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V0643-20 31 March 2020 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · exención

Exemption for foreign work depends on recipient being non-resident and applying a similar tax

A Spanish resident asks whether they can claim the exemption under article 7 p) of the Spanish Personal Income Tax Law for services rendered in Angolan waters for a Namibian company. The DGT states that eligibility depends on the recipient entity being non-resident and the fiscal nature of the jurisdiction where the work is carried out.

The question raised

In relation to the income received from the company based in Namibia, whether the exemption regulated in Article 7 p) of the Personal Income Tax Law is applicable.

The DGT's ruling

To apply the exemption, the work must be performed for a non-resident entity or a permanent establishment abroad. The place of work must have a tax similar to the Personal Income Tax (IRPF) and must not be a tax haven, although it is not necessary that the income has been effectively taxed there. In the case of Angola, as there is no tax treaty with Spain, the existence of an analogous tax and that it is not a tax haven must be proven.

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