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V2310-19 5 September 2019 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
OTRO · iae

Clothing rental must be taxed under IAE heading 856.1 and is subject to Income Tax withholding

A company providing costume rentals for film production companies has queried whether its registration under IAE heading 856 is correct. The DGT confirms that it must use heading 856.1 and explains that its clients are required to apply Income Tax (IRPF) withholding.

The question raised

Whether the I.A.E. heading under which the registration was made is correct.

The DGT's ruling

The clothing rental activity is classified under heading 856.1 of the first section of the IAE Tariffs. Income from the leasing of movable property is subject to IRPF withholding pursuant to Article 75.2.b of the RIRPF. The applicable withholding rate is 19 percent on gross income, provided that the lessee is a person subject to the obligation to withhold.

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