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V2125-20 25 June 2020 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · retención

Withholding tax can be deducted in IRPF returns even when using credit notes

A commercial property landlord enquired whether they could deduct withholdings in their Personal Income Tax (IRPF) return when issuing credit notes with a negative balance due to a decrease in the Consumer Price Index (CPI). The Directorate General for Tax (DGT) ruled that the withholdings actually applied by the tenant may be accounted for.

The question raised

Deduction of withholdings in the Personal Income Tax (IRPF) return.

The DGT's ruling

It is not appropriate to apply the deduction of the amount that should have been withheld when the withholding is not less than the amount due, but rather when the gross income is reduced by a corrective invoice. The taxpayer must include in their tax return the withholdings actually made by the lessee. Withholdings are attributed to the period in which the income subject to withholding is attributed.

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