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V2039-14 28 July 2014 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · retención

Withholding agents may not deduct unapplied IRPF withholdings from previous years from payroll

A query was raised regarding whether a company could deduct from 2014 payroll the amount of IRPF withholdings that were incorrectly applied in 2013. The DGT ruled that there is no legal basis to carry out such deductions from employees' income.

The question raised

It is asked whether the withholding agent may deduct from the 2014 payrolls the amount of the withholdings not applied in 2013.

The DGT's ruling

Pursuant to Article 99.5 of Law 35/2006, when withholding is not applied or is lower than required due to the withholding agent, the recipient shall deduct from their tax liability the amount that should have been withheld. Non-compliance with the obligations of the withholding agent does not permit deductions from workers' income nor the claiming of amounts from them for withholdings not applied at the time.

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