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V0967-22 3 May 2022 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · subrogación empresarial

Business succession by subrogation does not imply the existence of more than one payer for Personal Income Tax (IRPF)

A query was raised regarding whether a worker who changes companies within the same group via subrogation is considered to have more than one payer for the purpose of determining their IRPF filing obligations. The Directorate General for Tax (DGT) ruled that, where business succession occurs, the new entity maintains the status of being the same payer.

The question raised

Inquiry is made regarding the existence of more than one payer for the purposes of determining the obligation to file the IRPF-2021 tax return.

The DGT's ruling

If a succession of business occurs under the terms of Article 44.1 of the Workers' Statute, the transferee company maintains the status of the same payer for Personal Income Tax (IRPF). This means that there is no existence of more than one payer for the purpose of determining the limit of the obligation to file a tax return for income from employment. The responsibility for withholdings extends to the successor by virtue of the ownership of the business operation.

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