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V2297-19 5 September 2019 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · subrogación empresarial

Business subrogation via spin-off does not result in multiple payers for tax filing thresholds

A query was raised regarding whether a worker subrogated through a corporate spin-off has one or multiple payers for determining their Personal Income Tax (IRPF) filing obligations. The Directorate General for Taxes (DGT) ruled that business succession maintains the status of a single employer; therefore, the €22,000 threshold applies.

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 two payers as a consequence of business subrogation resulting from a demerger.

The DGT's ruling

In cases of business succession pursuant to Article 44 of the Workers' Statute, the transferee maintains the status of the same employer. Therefore, there is no existence of more than one payer of employment income for the purpose of determining the threshold for the obligation to file a tax return. The applicable limit shall be 22,000 euros per annum.

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