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V1632-20 27 May 2020 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · subrogación empresarial

Business subrogation does not imply two separate payers for the threshold to file a tax return

A query was raised regarding whether business subrogation results in the existence of two separate payers for the purpose of determining the obligation to file an Income Tax (IRPF) return. The Directorate General for Taxes (DGT) ruled that the transferee company is considered the same payer for determining the applicable withholding rate.

The question raised

For the purpose of determining the obligation to file the IRPF-2019 tax return, the question concerns the existence of one or two payers as a consequence of business subrogation.

The DGT's ruling

In cases of business succession, the transferee company maintains the status of the same payer for the purpose of determining the applicable withholding rate on employment income. Therefore, the consideration of the existence of a single payer establishes that the threshold for the obligation to file a tax return shall be 22,000 euros per annum. This prevents the application of the 14,000 euro threshold corresponding to the existence of more than one payer.

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