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V2390-14 11 September 2014 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · plantilla media

Transfer of employees does not constitute job creation for income tax reductions

The inquirer asks how the transfer of their workforce to a new company affects the calculation of the average workforce for the job maintenance tax reduction. The Directorate-General for Taxes (DGT) clarifies that employee subrogation does not constitute job creation and establishes how to calculate the workforce for both the transferring and the new employer.

The question raised

How do the aforementioned circumstances affect the calculation of the average workforce corresponding to the 2008 fiscal year, for the purposes of applying the reduction provided for in the twenty-seventh additional provision of the Personal Income Tax Law.

The DGT's ruling

The legal subrogation of workers does not constitute job creation, as no new employment relationship exists. For the transferring employer, subrogated workers may be excluded from the calculation of the average workforce for the fiscal year of the transfer and for the 2008 fiscal year. For the new employer, subrogated workers are counted as if they had been part of the workforce since the beginning of the fiscal year. If the taxpayer excludes the subrogated workers in 2013, their average workforce will be zero and they will be unable to apply the reduction.

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