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V0373-16 1 February 2016 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · subrogación empresarial

Business succession does not result in two payers for income tax filing obligations

A query was raised regarding whether a worker subject to business succession has one or two payers for the purpose of determining their personal income tax (IRPF) filing obligations. The Directorate General for Taxes (DGT) ruled that, in such cases, the new employer maintains the status of the same employer, and therefore, more than one payer does not exist.

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 purpose 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 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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