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V3541-20 11 December 2020 · SG de Impuestos sobre las Personas Jurídicas Criterion in force
IS · retención

Property location and ancillary services are not subject to Corporation Tax withholding if they constitute a regular economic activity

A company that sources properties for production companies and provides refurbishment and catering services has asked whether it should apply Corporation Tax withholding to its invoices. The DGT has ruled that, as this is its regular economic activity, withholding is not applicable.

The question raised

Whether the invoice issued by the consulting entity to the production company for real estate search and location services must include the withholding tax on behalf of Corporate Income Tax.

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