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V3369-15 2 November 2015 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · retención

The withholding tax rate applicable at the time of rent payment must be applied

A landlord inquired which personal income tax (IRPF) withholding rate should be applied when collecting an invoice issued under a previous regulatory rate. The Directorate General for Taxes (DGT) ruled that the obligation to withhold arises when the rent is paid, and therefore the rate in force at that specific moment must be applied.

The question raised

Type of withholding applicable at the time of paying the invoice.

The DGT's ruling

The obligation to withhold arises at the moment the income is satisfied or paid. Therefore, the withholding shall be applied at the withholding rate in force at the time of payment, regardless of when the invoice was issued or when the income is temporally imputed. In this case, as payment is made from 12 July 2015, the rate of 19.5 percent applies.

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