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V1766-18 19 June 2018 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · subrogación empresarial

Business subrogation does not imply multiple payers for IRPF declaration limits

A query was raised regarding whether business subrogation constitutes having more than one payer for the purpose of determining IRPF (Personal Income Tax) declaration obligations. The DGT ruled that the new employer maintains the status of the same employer, meaning the €22,000 threshold applies.

The question raised

For the purpose of determining the obligation to file a tax return for the 2018 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. 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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