Doctrine by topic · DGT Observatory

Minimum Withholding Rate: DGT doctrinal evolution

How the DGT's position on this topic has evolved, and the rulings it rests on.

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How the DGT's position has evolved

Settled doctrine High confidence 14 rulings · 2015–2026

Current position

The 2% minimum withholding rate under Article 86.2 of the IRPF (Personal Income Tax) Regulations applies exclusively to contracts or relationships with a fixed term of less than one year. It is not applicable to indefinite contracts, even if they are entered into mid-year or terminated before completing twelve months. In the case of permanent seasonal contracts (fijos-discontinuos) or indefinite contracts assigned to a specific project, the withholding must be determined using the general procedure.

The DGT's position remains constant regarding the application of the 2% minimum rate for relationships lasting less than a year. The doctrine has specified that indefinite contracts, including permanent seasonal contracts, cannot benefit from this minimum rate due to the lack of established time limits. The evolution shows a strict application of the concept of duration to prevent the application of the minimum rate to contracts of an indefinite nature.

Turning points

  1. V3107-23

    Clarifies that permanent seasonal contracts and indefinite contracts assigned to a project cannot apply the 2% minimum rate as they are contracts without established time limits.

  2. V1820-24

    Confirms that the minimum rate is not applicable to indefinite contracts, even if their execution lasts less than twelve months.

Analysis based on 14 of 14 rulings with a stated position. Updated 26 September 2026.

Rulings on this topic

14
V0277-17 2 Feb 2017

One-year training contracts are subject to general income tax withholding

SG de Impuestos sobre la Renta de las Personas Físicas
rendimientos del trabajoretención a cuentacontrato para la formación y el aprendizajetipo mínimo de retenciónlímite cuantitativo excluyente RIRPF — RD 439/2007, Reglamento del IRPF art. 80.1.1ºRIRPF — RD 439/2007, Reglamento del IRPF art. 81.1
Affects CompanyExpat · Non-residentIndividual

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