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V0301-16 26 January 2016 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · subrogación empresarial

Business transfer does not result in multiple payers for income tax filing thresholds

A worker inquired whether, following a business transfer, they have two separate payers for the purpose of determining the obligation to file an income tax return. The DGT ruled that the new employer maintains the status of the same employer, meaning the threshold for exemption from filing remains at 22,000 euros per year.

The question raised

For the purpose of determining the obligation to file a tax return for the 2015 period, an inquiry is made regarding the existence of one or two payers as a consequence of business subrogation.

The DGT's ruling

In cases of business subrogation, the assignee maintains the status of the same employer for the purposes of determining the applicable withholding rate. Therefore, there is no existence of more than one payer for the purposes of the obligation to file a tax return. The threshold for not filing a tax return shall be 22,000 euros per year, provided that the income is not subject to a fixed withholding rate.

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