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V1967-17 20 July 2017 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · retribución en especie

The excess of health insurance premiums over the exempt limit constitutes benefits in kind subject to withholding tax

A query is made regarding when the payer must perform the withholding tax when health insurance premiums exceed the exempt limits. The DGT responds that the excess over 500 euros annually (or 1,500 euros for persons with disabilities) must be taxed.

The question raised

Application of the exemption under article 42.3 c) of Law 35/2006.

The DGT's ruling

The limit of 500 euros per person (1,500 euros for persons with disabilities) is an annual amount that must be applied regardless of whether the provision of services is for less than a full calendar year. The payer must perform the withholding tax when health insurance premiums exceed said annual exempt limit, as the obligation to withhold arises at the moment of the payment of the non-exempt income.

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