DGT distinguishes between SERMAS and the Directorate General of Public Service as payers

Determining the identity of payers is a fundamental aspect for the correct calculation of Personal Income Tax (IRPF) withholdings. A recent binding ruling from the Directorate General of Taxation (DGT) has clarified the situation of workers who receive income from different bodies of the Public Administration.

What the DGT has ruled

The question posed focused on determining whether the Madrid Health Service (SERMAS) and the Directorate General of Public Service of the Community of Madrid should be considered a single payer or two different ones. The DGT has ruled that they are two different payers.

The applied criterion is based on the legal personality of each body or entity. According to the resolution, SERMAS is a public law entity with its own legal personality, which distinguishes it from the Administration of the Community of Madrid acting through its Directorate General of Public Service. Therefore, as they possess independent legal natures, IRPF regulations require them to be treated as separate paying entities.

What this means for you

This resolution has a direct impact on workers who receive income from different entities of the Public Administration that possess their own legal personality. Since there are two payers, each must carry out its own IRPF withholdings independently, based on the information each entity holds regarding the income received by the taxpayer.

For the taxpayer, this implies that the sum of the income received from both entities must be taken into account when filing the annual tax return, as the withholdings applied by each payer might not match the actual marginal rate if both incomes are not considered jointly.

What you should do

It is necessary for workers in this situation to verify the information reflected in their withholdings. It is recommended to assess each particular case to ensure that the tax burden applied by each entity is correct and to avoid possible discrepancies in the tax settlement at the end of the fiscal year.