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V3390-19 11 December 2019 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · rendimientos del trabajo

Payers of grants must calculate income tax withholding based solely on the grant amount

A regional government department inquired how to calculate income tax (IRPF) withholdings for training grants when the beneficiary's full payroll details are unknown. The Directorate General for Taxes (DGT) ruled that the payer must use only the grant amount as the base and must apply the minimum withholding rate of 2% if the grant lasts less than one year.

The question raised

Method for calculating the IRPF withholding rate in cases where the Department, not being the employer, does not have information regarding the beneficiary's employment remuneration: whether only the amount of the aid should be taken into account, whether the reductions provided in Article 84 of the Regulations must be taken into account, and whether the minimum rate of 2% should be applied.

The DGT's ruling

The withholding agent must determine the base for the withholding rate by considering only the amount of the aid provided, as the volume of remuneration is independent for each payer with its own legal personality. The procedure set forth in the Regulations must be applied, including the personal and family minimum. If the aid has a duration of less than one year, the minimum withholding rate of 2% shall apply.

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