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V1543-19 24 June 2019 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · exención por trabajos en el extranjero

Requirements for exemption from foreign work earnings in intragroup services

A Spanish resident worker undertaking business trips to Italy and Croatia for a multinational asks whether exemption for foreign work applies. The DGT states that exemption applies only if the services are provided to non-resident entities through intragroup service arrangements that generate a benefit or advantage to those entities.

The question raised

Whether the requirements for applying the exemption provided for in Article 7 p) of the Personal Income Tax Law are met.

The DGT's ruling

The exemption requires that the work be effectively performed abroad and for a non-resident entity or permanent establishment. In corporate groups, it must be demonstrated that the service is intra-group and produces an advantage or benefit to the non-resident recipient entity, pursuant to Article 18.5 of the LIS. The portion of the remuneration corresponding to services provided to the Spanish entity is not exempt. The calculation of the exempt portion is carried out through a proportional allocation of the days of stay and specific remunerations, with a limit of 60,100 euros per year.

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