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V2240-24 16 October 2024 · SG de Fiscalidad Internacional Criterion in force
IRPF · establecimiento permanente

Accounting services provided from Spain to Venezuela only taxable in Spain if no permanent establishment exists

A professional resident in Spain provides accounting services to Venezuela by remotely connecting to a computer located in that country. The DGT analyses whether that computer constitutes a permanent establishment in Venezuela to determine taxing rights.

The question raised

Elimination of double taxation in Spain for the tax paid in Venezuela.

The DGT's ruling

Accounting services performed from Spain may only be subject to taxation in Spain, unless the professional has a permanent establishment in Venezuela. The computer in Venezuela does not constitute a permanent establishment because its activity of hosting the computer program is of a preparatory or auxiliary nature. In the absence of a permanent establishment, Venezuela should not tax such income and, should it do so, the double taxation deduction in Spain would not be applicable.

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