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V1031-16 15 March 2016 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · exención

To calculate the foreign work exemption, use the total number of days in the year

The DGT confirms that to calculate the daily amount of foreign work-exempt income, the total number of days in the year (365 or 366) should be used.

The question raised

Assuming that all requirements for the exemption provided for in letter p) of Article 7 of the Personal Income Tax Law are met, calculation of the amount of income accrued each day for work performed abroad: whether the period to be computed in the denominator is the total number of calendar days in the year (365 days) or the number of calendar days in the year during which the individual was under contract (31 days).

The DGT's ruling

To calculate the amount of income accrued each day, a proportional distribution is applied using the total number of days in the year as the denominator. The non-specific remuneration obtained in the year of the assignment is quantified in the numerator. The result is multiplied by the number of days the worker was assigned abroad to perform the work.

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