Skip to main content
Practical Manual for Companies 2023.

Persons obliged to withhold and make payments on account

Regulation: Article 128.1 of the LIS

They are required to withhold or pay on account when they satisfy or pay income subject to withholding or payment on account of Corporate Tax:

  1. The legal persons and other entities , including communities of property and owners and entities under an income attribution regime.

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

  3. Natural persons, legal entities and other entities not resident in Spanish territory, that operate therein 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 regulation and supervision of private insurance, approved by Royal Legislative Decree 6/2004, who acts on behalf of the insurance entity that operates under the free provision of services regime, in relation to operations carried out in Spain.

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