Skip to content
Back to index
V1246-16 29 March 2016 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · subrogación empresarial

No more than one payer exists in cases of business subrogation for income tax filing thresholds

An employee inquired whether, following a business subrogation, they would have two payers for the purpose of determining if they must file an income tax return. The Directorate-General for Taxes (DGT) ruled that the new employer is considered the same employer for Personal Income Tax (IRPF) purposes.

The question raised

For the purpose of determining the obligation to file for the 2015 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 transferee 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 filing remains at 22,000 euros per year, provided there are no earnings subject to a fixed withholding rate.

Book your free first meeting