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V0701-18 15 March 2018 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · subrogación empresarial

No more than one payer is considered to exist in cases of business subrogation for tax filing limits

A query was raised regarding whether a worker has one or two payers to determine their obligation to file an Income Tax (IRPF) return following a business subrogation. The Directorate General for Taxes (DGT) ruled that, due to the subrogation, the new employer maintains the status of the same employer, meaning there is not more than one payer.

The question raised

For the purpose of determining the obligation to file a tax return for the 2017 tax period, an inquiry is made regarding the existence of one or two payers as a consequence of business subrogation.

The DGT's ruling

In 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 return remains at 22,000 euros per year for income from employment.

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