Skip to content
Back to index
V1666-18 12 June 2018 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · subrogación empresarial

Multiple payers not considered in business subrogation cases for tax declaration limits

A query was raised regarding whether a worker undergoing business subrogation at their workplace has one or two payers for the purpose of determining their Personal Income Tax (IRPF) declaration obligations. The Directorate General for Taxes (DGT) ruled that, due to the subrogation of rights and obligations, the new employer maintains the status of the same employer.

The question raised

For the purpose of determining the obligation to file 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 threshold for the obligation to file a tax return for employment income. The threshold for not being required to file a tax return shall be 22,000 euros per year, provided there are no earnings subject to a fixed rate.

Book your free first meeting