4.7 Withholdings and payments on account

Once the deductions for investments applied to the positive adjusted total quota or reduced total quota, the positive net quota for the year is obtained ( or positive). This amount is subtracted from the withholdings and payments on account, giving rise to the quota for the year to be paid or returned . 

In general, entities, individuals who carry out economic activities and non-residents who operate in Spain through a permanent establishment, who pay income subject to IS are required to withhold.

They are subject, among others, to retention : 

• Income from movable capital.

• Prizes from games, contests, raffles or random combinations, whether or not linked to the offer, promotion or sale of certain goods, products or services or the sale of certain goods, products or services and lottery and betting prizes that are subject to and not exempt from the special tax on certain lotteries and bets.

• Compensation obtained for positions as director or advisor in other companies.

• Income obtained from the transfer of the right to exploit the image or from consent or authorization, even when obtained in the development of an economic activity.

• Income from the leasing or subleasing of urban properties, even when they constitute income derived from economic operations.

• Income obtained from the transfer or reimbursement of shares or interests representing the capital or assets of collective investment institutions. 

Likewise, when the above income is paid in kind, the corresponding payment on account must be made.