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V1572-15 25 May 2015 · SG de Fiscalidad Internacional Criterion in force
IRPF · residencia fiscal

The university's withholding obligation depends on the determination of the worker's tax residence

A Spanish university has requested clarification on whether it must withhold tax from an employee seconded to the United Kingdom. The Directorate General for Taxes (DGT) explains that withholding will depend on whether the employee is considered a tax resident in Spain or the United Kingdom, in accordance with domestic regulations and the Double Taxation Convention.

The question raised

Whether the applicant must apply withholding tax on the salaries paid during the remainder of 2014 and in 2015, as it is anticipated that both incomes will be received at least until September of that year, coinciding with the duration of the academic year for which the compatibility of the two positions has been requested.

The DGT's ruling

Si el trabajador es residente en España, la universidad debe practicar retenciones por IRPF sobre su renta mundial. Si es residente en el Reino Unido, la renta obtenida en España puede someterse a imposición en España, debiendo la universidad practicar retención conforme al Impuesto sobre la Renta de no Residentes. En el caso de no residentes, el tipo de gravamen será del 24% o del 20% en 2015 según corresponda.

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