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V0815-15 13 March 2015 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · exención

Requirements for exemption from foreign work income

The DGT clarifies that exemption under article 7.p) of the LIRPF applies only when work is carried out for a non-resident entity, and if there is a link, the service must generate a benefit or utility to the recipient entity.

The question raised

Application of the exemption established in letter p) of article 7 of the IRPF Law.

The DGT's ruling

To apply the exemption, the work must be effectively performed abroad for a non-resident entity or permanent establishment. If the recipient entity is related, the service must produce an advantage or benefit to the non-resident entity, in accordance with the LIS. Activities carried out in the interest of the parent company (as a shareholder) are not considered intra-group services. The exemption does not apply to the portion of the services corresponding to benefits provided to the Spanish entity.

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