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V1493-14 6 June 2014 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · exención

Exemption not applicable for foreign work carried out for own public employer

A Spanish public sector employee requests IRPF exemption for a two-month foreign assignment for an experiment. The DGT states that the exemption does not apply because the work is carried out for the public entity itself, not for a non-resident entity.

The question raised

Whether the application of the exemption provided for in letter p) of Article 7 of the Personal Income Tax Law is appropriate.

The DGT's ruling

To apply the exemption under Article 7(p) of the Personal Income Tax Law (LIRPF), the work must be effectively performed abroad and for a company or entity that is not resident in Spain, or for a permanent establishment abroad. In this case, although the worker travels outside of Spain, the work is performed in the interest of the Spanish employer and not for a non-resident entity. Therefore, the requirement regarding the entity receiving the work is not met.

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