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V2856-14 22 October 2014 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · retención

Associations must withhold income tax on professional fees

A lawyer asks whether a non-profit association must withhold IRPF when paying professional services. The DGT responds that, as a legal entity, the association is obliged to carry out withholding.

The question raised

Whether the association is obliged to apply withholding on the income it pays.

The DGT's ruling

Fees for professional services are income subject to withholding according to the Personal Income Tax Regulations. Legal entities are obliged to apply withholding when they pay income subject to this obligation. The withholding must be carried out by the party paying the income.

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