Skip to content
Back to index
V2289-23 28 July 2023 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · rendimientos del trabajo

Remuneration for local government officials classified as employment income subject to withholding tax

A query was raised regarding whether payments made to local government officials (Presidents, Councillors, and opposition members) for their roles or meeting attendance are subject to tax withholding. The Directorate General for Taxes (DGT) ruled that these amounts constitute employment income and must be subject to the withholding system, with the sole exception of travel and subsistence expenses.

The question raised

Whether said amounts are subject to withholding.

The DGT's ruling

Remuneration assigned to members of local entities by reason of their office constitutes employment income subject to Personal Income Tax (IRPF) and its withholding system. This criterion applies both to fixed remuneration for exclusive or partial dedication and to amounts for attendance at sessions. Only the portion assigned by the institution for travel and displacement expenses is excluded.

Book your free first meeting