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V1832-19 15 July 2019 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · subrogación empresarial

Successive business transfers do not result in multiple payers

A query was raised regarding whether successive business transfers involving a single worker within the same year result in multiple payers for Personal Income Tax (IRPF) purposes. The Directorate General for Taxes (DGT) ruled that, upon a business transfer, the new employer maintains the status of the same employer.

The question raised

For the purpose of determining the obligation to file a tax return for the 2018 tax period, an inquiry is made regarding the existence of one or more payers as a consequence of the aforementioned business subrogations.

The DGT's ruling

In cases of business succession pursuant to the Workers' Statute, the transferee maintains the status of the same employer for the purpose of determining the withholding rate. This status is not altered by the occurrence of more than one change of ownership within the same calendar year. Therefore, there is no existence of more than one payer for the purpose of applying the limits regarding the obligation to file a tax return. The threshold for not filing shall be 22,000 euros per annum.

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