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V1453-14 30 May 2014 · SG de Fiscalidad Internacional Criterion in force
IRNR · no residente

Company must file negative declaration even if no IRNR retention due

A company asks whether it must continue withholding and paying IRNR for a worker sent to Saudi Arabia. The DGT replies that if the worker is a non-resident and their income is not derived from activities in Spain, there is no obligation to withhold, but a negative declaration must still be filed.

The question raised

Whether the consultant must continue to withhold on the payroll of the displaced worker and remit the withholdings in Spain.

The DGT's ruling

If the worker proves their residence in Saudi Arabia, their income not derived from activity in Spain is not considered to be obtained in Spanish territory. Although withholding tax is not applicable due to non-subjectivity, the company must comply with the obligations to file tax returns and make payments on account, which includes the filing of a nil return.

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