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V2051-14 28 July 2014 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · rendimientos de actividades económicas

Grants for hiring unemployed persons are not subject to Income Tax withholding for sole traders

A financial institution has enquired whether economic grants provided to companies for hiring unemployed individuals must be subject to tax withholding. The Directorate General for Taxes (DGT) has ruled that, as these grants do not constitute consideration for professional activity, there is no obligation to apply withholding tax.

The question raised

Cuestión planteada Sometimiento a retención de las referidas ayudas.

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