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V2619-14 6 October 2014 · SG de Fiscalidad Internacional Criterion in force
IRNR · residencia fiscal

Duty to submit models 296 and 216 for non-resident workers with non-taxable income

A company enquires about retention obligations and model submissions in relation to a worker's relocation to Equatorial Guinea. The DGT explains that taxation will depend on the worker's fiscal residency, and that if non-resident, income from foreign employment is not subject to IRNR.

The question raised

Obligation to withhold and to submit Forms 216 and 296.

The DGT's ruling

If the worker is a tax resident in Spain, they are taxed on their worldwide income under Personal Income Tax (IRPF). If they are a non-resident, they are only taxed on income from Spanish sources; as they work in Equatorial Guinea, said income is not subject to Non-Resident Income Tax (IRNR) and no withholding is required. Nevertheless, the company must submit Form 296 (annual summary) and Form 216 (quarterly declaration) to include those workers for whom no withholding has been applied because the income is not subject to taxation in Spain.

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