Skip to content
Back to index
V2977-21 23 November 2021 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · rendimientos de actividades económicas

Income tax withholding depends on the nature of the activity (professional, business, or objective estimation)

A foundation has enquired whether it must apply personal income tax (IRPF) withholdings to individuals providing computer maintenance and repair services. The Directorate General for Taxes (DGT) has ruled that the obligation to withhold will be determined by the nature of the activity performed by the service provider.

The question raised

Subject to withholding tax on Personal Income Tax (IRPF) for the income corresponding to the provision of the aforementioned services.

The DGT's ruling

Subject to withholding depends on whether the income is derived from professional, agricultural, livestock, forestry, or business activities under the objective estimation regime. If the activity is professional, a 15% withholding rate applies, except for exceptions regarding new professionals or specific deductions. For road freight transport and moving activities under the objective estimation regime, the withholding rate is 1%.

Book your free first meeting