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V2928-14 30 October 2014 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · retenciones

15% withholding tax rate applicable to professional activities under certain requirements

A query was raised regarding whether a 15% withholding tax rate could be applied instead of 21% on income from professional activities. The DGT has ruled that this is possible provided specific income volume requirements are met and the payer is notified.

The question raised

Inquiry is made regarding the possibility of applying the 15 percent rate to the income from the professional practice fulfilled by the consulting professional association.

The DGT's ruling

The withholding rate shall be 15% when the gross income from professional activities of the previous fiscal year is less than 15,000 euros and represents more than 75% of the sum of income from economic activities and employment income. The taxpayer must communicate this circumstance to the payer, who must retain the signed communication. This percentage shall be reduced by half if the income is entitled to the deduction provided for in Article 68.4 of the Personal Income Tax Law.

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