IRPF Deductions on Services

Anglo-Spanish Chartered Accountants

english espaņol

IRPF on Services

There are many transactions where withholding tax should be applied. Two of the most common forms of IRPF deductions are those relating to rental of property as seen in the previous section, and those relating to services provided by certain professional sole traders. Let’s consider a further example for this type of expense:

 

Purchase invoice - Professional Services  
  Invoice Our money VAT - Tax office money> IRPF - Tax office money
 
Services 1,500 -1,500    
VAT @ 6% 240   -240  
IRPF @ 15% -225     225
  1,515 -1,500 -240 225

 

Again, for the purposes of our profit calculation VAT and IRPF can be ignored:

 

Profit and loss account
 
Sales 3,000
Expenses -2,700
Profit / (Loss) 300
 
Centro de Negocios Puerta de Banus Edf. B-1, Nueva Andalucia 29660, Marbella (Málaga) | Tel: +34 952 815 365 | Fax: +34 952 814 796 |
Rose & Clavel Chartered Accountants, S.L.- B92962083 - Inscrita en el Registro Mercantil de Málaga - Tomo 4574 Libro 3482 Folio 179 Hoja MA-99161 Inscrip.:1