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Practical Manual of Companies 2021.

Persons obliged to withhold and make payments on account

According to the provisions of article 128.1 of the LIS they are obliged to withhold or deposit on account when they satisfy or pay income subject to withholding or deposit on account. of Corporate Tax:

  1. legal persons and other entities , including communities of property and owners and entities under the income allocation regime.

  2. natural persons with respect to the income they pay or pay in the exercise of their economic activities .

  3. Natural persons, legal entities and other entities not resident in Spanish territory, which operate there through permanent establishment .

  4. The representative designated in accordance with the provisions of article 86.1 of the consolidated text of the Law on the organization and supervision of private insurance, approved by Royal Legislative Decree 6/2004, that acts on behalf of the insurance entity that operates under the regime of free provision of services, in relation to operations carried out in Spain.

    With effect from 1-1-2016 , insurance entities domiciled in another Member State of the European Economic Area will be required to make withholding or payment on account. that operate in Spain under the regime of free provision of services, in relation to operations carried out in Spain.