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V2902-20 25 September 2020 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · retención

No obligation to withhold Income Tax on forestry services and timber trade income

An entrepreneur engaged in forestry services and the wholesale trade of timber has enquired whether they are required to apply Income Tax withholdings. The Directorate General for Taxes (DGT) has ruled that these activities are not included in the list of income subject to withholding.

The question raised

Whether the gross income obtained from the aforementioned activities is subject to the obligation to withhold.

The DGT's ruling

Forestry service activities and the wholesale trade of wood are not among the income from economic activities subject to withholding according to article 75.1.c) of the RIRPF. Therefore, there is no obligation to apply withholding tax on the gross income from said activities.

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