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V1733-17 5 July 2017 · SG de Fiscalidad Internacional Criterion in force
IRNR · exención por convenio

Remuneration of Cuban researcher exempted by agreement not subject to retention in Spain

A Cuban researcher resident in Cuba asks how to stop the 24% withholding on his research grant income. The DGT responds that, under the agreement with Cuba, such income is exempt and retention is not applicable.

The question raised

Procedure to follow to cease the aforementioned withholding, given that said remuneration is exempt from taxation.

The DGT's ruling

Pursuant to Article 21 of the Convention between Spain and Cuba, the remuneration of a teacher or researcher who travels by invitation of a higher education institution for a period not exceeding two years is exempt from taxation in the host State. As the income is exempt under the convention, no withholding tax is applicable under the TRLIRNR. The interested party must request a refund of any unduly withheld amounts from the Tax Administration.

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