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V2392-14 11 September 2014 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · atribución de rentas

LIRPF employment creation tax reduction applies to individual taxpayers, not to entities under income attribution regimes

A query was raised regarding whether two owners of a pharmacy under a community of property regime could apply the tax reduction provided in the twenty-seventh additional provision of the LIRPF. The DGT ruled that the reduction belongs to the individual taxpayers (partners) rather than the entity itself, noting that in this instance, the partner's average workforce had decreased compared to 2008.

The question raised

Whether the two owners of the pharmacy may apply the reduction provided in the twenty-seventh additional provision of the Personal Income Tax Law for the 2013 tax year.

The DGT's ruling

The reduction provided in the twenty-seventh additional provision of the Personal Income Tax Law (LIRPF) applies to taxpayers engaged in economic activities, not to entities under the income attribution regime. The limits regarding turnover, average workforce, and personnel expenses must be calculated for each partner based on their shareholding. For the reduction to apply, the taxpayer's average workforce must not be lower than that of the 2008 period. In the specific case at hand, as the average workforce for 2013 is lower than that of 2008, the reduction does not apply to the applicant.

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