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V1061-18 25 April 2018 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · subrogación empresarial

Business transfer does not result in multiple payers for income tax filing obligations

A query was raised regarding whether a worker undergoing a business transfer at their workplace has one or two payers for the purpose of determining their personal income tax (IRPF) filing obligations. The Directorate General of Taxes (DGT) ruled that, due to the subrogation of rights and obligations, the new employer retains the status of the same employer.

The question raised

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

The DGT's ruling

In cases of 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 tax return shall be 22,000 euros per annum for income from employment.

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