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V2422-23 7 September 2023 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · retenciones

Withholding tax rate for professional activities cannot exceed 15 per cent

A professional has enquired whether they may increase the withholding tax rate on their invoices to above 15 per cent. The Directorate General for Tax Regulations (DGT) has ruled that this is not possible, as the regulations do not provide for rates higher than those established.

The question raised

Whether it is possible, when preparing invoices issued for professional services, to increase the withholding rate to one higher than 15 percent.

The DGT's ruling

Withholdings on income from professional activities are governed by Article 95 of the Personal Income Tax Regulations. This provision establishes rates of 15 percent, or 7 percent in specific cases of commencement of activity or specific activities. The regulations do not contemplate the application of a withholding rate higher than the established rates.

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