Who is obliged to withhold Corporation Tax?

Article 41 of Law 27/2014, of November 27, on Corporate Income Tax (LIS), simply states that withholdings on account will be deductible from the total amount.

According to article 128 LIS, entities, including communities of property and owners, that satisfy or pay income subject to Corporate Tax will be obliged to withhold or make payments on account, as a payment on account, the amount resulting from applying the withholding percentages indicated below to the withholding base, and to pay its amount to the Treasury in the cases and forms established.

Individuals will also be required to withhold and pay taxes on income they receive or pay in the course of their economic activities, as well as individuals, legal entities and other entities not resident in Spanish territory that operate in it through a permanent establishment.

Likewise, 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 make withholding or payment on account, in relation to operations carried out in Spain.

The person obliged to withhold must submit a declaration of the amounts withheld or a negative declaration when these have not been carried out within the established time periods, in the manner and in the places established. It will also present an annual summary of withholdings. The corresponding declaration models will be approved by the Minister of Finance.