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V1497-18 1 June 2018 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · subrogación empresarial

Business transfer does not result in two payers for the threshold to file tax returns

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 obligation to file an Income Tax (IRPF) return. The Directorate General for Taxes (DGT) ruled that, due to the transfer, the new employer maintains the status of the same employer, and the existence of more than one payer is not considered.

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 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 being required to file a tax return shall be 22,000 euros per annum for income from employment.

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