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V1711-24 11 July 2024 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · obligación de retener

Obligation to retain 15% of professional income for parishes

A Catholic parish (a non-profit legal entity) pays a professional and asks whether retention of 15% of professional income is required. The DGT confirms that, as a legal entity covered by article 76.1 of the Income Tax Law, the parish is obliged to retain. Income from professional activities is subject to retention (article 75.1.c of the Income Tax Law). The general rate is 15%, or 7% if the professional is new to the activity (first three years) and formally notifies this.

The question raised

Obligation to withhold on the invoice issued to the parish.

The DGT's ruling

For a withholding obligation to exist, it must be met that the income is subject to withholding and that the payer is a withholding agent. As the parish is a legal entity, it meets the condition of a withholding agent according to article 76.1 of the RIRPF. Therefore, it must apply the corresponding withholding to the income from professional activities and remit it to the Treasury.

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