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V1810-17 11 July 2017 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · regularización

Procedure to regularise the tax withholding rate upon conversion of a fixed-term to an indefinite contract

A worker asks how to regularise their IRPF withholding when changing from a fixed-term to an indefinite contract. The DGT responds that a new withholding rate must be calculated taking into account all anticipated remuneration for the natural year.

The question raised

Question posed: Method for regularizing the withholding rate.

The DGT's ruling

The conversion of a temporary contract into a permanent one constitutes grounds for regularization pursuant to Article 87 of the IRPF Regulations. For calculation purposes, a new withholding rate must be determined based on current circumstances, and the withholdings already applied must be subtracted. The new rate is obtained by dividing that difference by the remuneration to be received until the end of the year. The new rate may not exceed 45 percent.

Apply this to a real case

What is published here, applied to a company or a specific case. The first meeting is free.

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