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V1764-18 19 June 2018 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · subrogación empresarial

Multiple payers not considered in cases of business succession for income tax filing thresholds

A query was raised regarding whether a worker undergoing business succession at their workplace has one or two payers, which determines their obligation to file an income tax return. 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, and therefore, multiple payers do 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 transferee maintains the status of the same employer for the determination of the applicable withholding tax 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 employment income, provided that such income is not subject to a fixed withholding rate.

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