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V2210-14 7 August 2014 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · rendimientos del trabajo

Remuneration for directors classified as employment income with 35% (or 42% in specific periods) withholding tax

A query was raised regarding the type of withholding tax to apply to a director receiving a salary for their work, even if the company bylaws state the position is unpaid. The DGT ruled that such remuneration constitutes employment income and is subject to the corresponding withholding tax.

The question raised

Type of withholding tax applicable to the amounts paid to the director.

The DGT's ruling

Remuneration received for the performance of duties inherent to the position of director constitutes income from employment, regardless of whether a senior management contract exists or the commercial nature of the relationship. For the tax periods 2012, 2013, and 2014, the applicable withholding tax rate for such income is 42 percent.

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