Main tax innovations introduced by Royal Decree 31/2023, of 24 January, amending the Personal Income Tax Regulations, approved by Royal Decree 439/2007, of 30 March, to comply with the measures contained in the Artist's Statute regarding withholdings.
PERSONAL INCOME TAX (IRPF)
With effect from 26 January 2023 the following amendments are made to the Personal Income Tax Regulations (RIRPF).
Minimum withholding tax rate applicable to certain income from work
Article 86(2) of the RIRPF is amended by the sole article of Royal Decree 31/2023 so that,
The minimum withholding rate applicable to income from work deriving from a special employment relationship for artists working in the performing, audiovisual and musical arts, as well as for persons performing technical or auxiliary activities necessary for the development of such activity, is reduced from 15% to 2% .
The percentage will be 0.8% when the earned income benefits from the deduction provided for in article 68.4 of the Personal Income Tax Act (deduction for income obtained in Ceuta and Melilla) and for the 2023 financial year, also in the case of income obtained on the island of La Palma by taxpayers who are habitually and effectively resident on that island (D.A. 53rd LIRPF introduced by LPGE for 2023).
Withholding tax rate applicable to certain economic activities
Article 95(1) of the RIRPF is amended by the sole article of Royal Decree 31/2023 so that,
The withholding rate is reduced from 15% to 7% in the following cases:
Taxpayers who carry out activities included in groups 851, 852, 853, 861, 862, 864 and 869 of the second section of the IAE Tariffs.
Taxpayers who carry out activities in groups 01, 02, 03 and 05 of the third section of the IAE Tariffs.
- When the consideration derives from a provision of services which, by its nature, if performed for an employee, would fall within the scope of application of the special employment relationship for artists.
In any of these cases it is necessary that the total income from all such activities in the immediately preceding financial year is less than 15,000 euros and represents more than 75% of the sum of the total income from economic activities and from work obtained by the taxpayer in that financial year.
The percentage will be reduced by 60% when the income benefits from the deduction foreseen in article 68.4 of the Personal Income Tax Act (deduction for income obtained in Ceuta and Melilla) and for the 2023 financial year, also in the case of income obtained on the island of La Palma by taxpayers with habitual and effective residence on that island (D.A. 53rd LIRPF introduced by LPGE for 2023).
por el que se modifica el Reglamento del Impuesto sobre la Renta de las Personas Físicas, aprobado por el Real Decreto 439/2007, de 30 de marzo, para dar cumplimiento a las medidas contenidas en el Estatuto del Artista en materia de retenciones.