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V0404-19 27 February 2019 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · exención por trabajos en el extranjero

Exemption for work performed abroad is not applicable to independent contractors according to the DGT

A resident in Spain inquired whether remuneration from a service contract as an independent contractor for the UNDP in Angola was exempt from Personal Income Tax (IRPF). The Directorate-General for Taxes (DGT) has ruled that the exemption for work performed abroad does not apply as there is no employment relationship.

The question raised

Whether the remuneration received under said contract is exempt from taxation in Spain under Personal Income Tax, by application of:

The DGT's ruling

The exemption under Article 7.p) of the Personal Income Tax Law only applies to income from employment derived from an employment or statutory relationship. Since the contract establishes that the applicant is an independent contractor and not a staff member, no employment relationship exists. Therefore, the exemption for work performed abroad is not applicable to said remuneration.

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