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V0306-16 26 January 2016 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · subrogación empresarial

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

A worker inquired whether, following a business succession, they have two payers for the purpose of determining if they are required to file an income tax return. The DGT ruled that the new employer maintains the status of the same employer, meaning they are considered a single payer.

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 transferee maintains the status of the same employer for the purpose of determining the applicable withholding tax 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 being required to file a tax return shall be 22,000 euros per annum, provided that the income is not subject to a fixed withholding rate.

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