Obliged to retain or pay into account

In general, they will be obliged to withhold or pay on account of the personal tax corresponding to the recipient, as long as they satisfy income subject to this obligation:

1. Legal persons and other entities, including communities of owners and entities under an income attribution regime.
2. Taxpayers of IRPF who carry out economic activities, when they generate income in the exercise of their activities.
3. Natural persons, legal entities and other entities not resident in Spanish territory, that operate there through a permanent establishment.
4. Natural persons, legal entities and other entities not resident in Spanish territory, who operate there without the mediation of a permanent establishment, with regard to the income from work they pay, as well as with regard to other income subject to withholding or payment on account that constitutes a deductible expense for obtaining the income referred to in article 24.2 of the Revised Text of the Non-Resident Income Tax Law.

A person or entity will not be considered to satisfy or pay a performance when it is limited to carrying out a simple payment mediation .

Simple payment mediation shall be understood as payment on behalf of and by order of a third party.

The operations indicated below are not considered simple payment mediation so there will be an obligation to retain when:

1. They are depositories of foreign securities owned by residents in Spanish territory or are in charge of managing the collection of income derived from said securities, provided that said income has not been subject to prior withholding in Spain.
2. Provide benefits to your staff on behalf of Social Security.
3. Pay their staff amounts paid by third parties as tips, compensation for service or similar.