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V2332-24 11 November 2024 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · salarios de tramitación

Salaries received from other employers are excluded from the calculation of withholding tax on settlement payments

A query was raised regarding whether salaries earned from other employers should be included in the gross income of settlement payments for withholding tax purposes. The Directorate General for Taxes (DGT) ruled that, as such salaries can be deducted from the settlement amount, they fall outside the payer's obligation to withhold tax.

The question raised

"Whether, for the calculation of the withholding tax, the amount of salaries received from other companies must be taken into account or not."

The DGT's ruling

Withholding tax is applied to the total amount of the remuneration paid or credited. Since salaries received from other companies may be deducted from the processing salaries, their amount does not form part of what the payer must pay. Therefore, said amount is outside the scope of the payer's obligation to withhold regarding the processing salaries.

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