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V1514-18 5 June 2018 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · subrogación empresarial

No two payers considered to exist in business subrogation cases for income tax filing obligations

A query was raised regarding whether a worker subject to business subrogation at their workplace has one or two payers to determine their personal income tax (IRPF) filing obligations. The Directorate General for Taxes (DGT) ruled that, due to the subrogation, the new employer maintains the status of the same employer, and therefore, more than one payer does not exist.

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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