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V1266-19 4 June 2019 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · trabajador desplazado

Foreign work exemption does not apply if commercial services benefit the Spanish company

A worker with international market development duties abroad asks whether the foreign work exemption applies. The DGT states that if the services are commercial in nature to achieve agreements, the Spanish company is the beneficiary and the exemption does not apply.

The question raised

How it should be treated from a tax perspective: whether or not it constitutes a posted worker, what their obligations and rights are regarding the posted worker status, what its temporal scope is, and which withholdings are to be applied.

The DGT's ruling

To apply the exemption under Article 7 p) of the LIRPF, the work must be performed for a non-resident entity or a permanent establishment abroad. If the travel is for commercial purposes to reach agreements, the beneficiary is the employer company resident in Spain, and the requirement is not met. In cases of intra-group services, there must be an advantage or benefit for the non-resident entity, in accordance with Corporate Tax regulations. The exemption is only applicable to the remuneration corresponding to the countries where all legal requirements are met.

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