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V3079-15 14 October 2015 · SG de Fiscalidad Internacional Criterion in force
IRNR · hecho imponible

No retention required on salaries of non-resident workers providing services abroad

A Spanish company asked whether it must withhold 20% on the salary of a worker resident in Portugal working abroad. The DGT responds that no retention is required as the activity does not take place in Spanish territory.

The question raised

Obligation to withhold on the remuneration paid to the worker.

The DGT's ruling

The remuneration of a non-resident worker is not subject to taxation in Spain if it does not derive from a personal activity carried out in Spanish territory. Therefore, it is not appropriate to apply withholding or payment on account on such remuneration. The worker may request the refund of unduly applied withholdings by means of Form 210.

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