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V2432-20 16 July 2020 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · exención por trabajos en el extranjero

Proportional foreign work exemption applicable

A Spanish resident working in several EU countries for an Irish company asks whether the exemption under article 7 p) of the LIRPF can be applied to their salary and allowances on a proportional basis.

The question raised

Whether the exemption regulated in Article 7 p) of the Personal Income Tax Law is applicable to the proportional part of the monthly base salary and the pro rata of extra payments corresponding to each day of work abroad, as well as to the proportional part of the supplement for hours performed abroad.

The DGT's ruling

The exemption requires that the work be effectively performed abroad for a non-resident entity and in countries with an analogous tax that are not tax havens. To quantify the exempt portion of non-specific remuneration, a proportional distribution criterion must be applied based on the number of days spent abroad relative to the total number of days in the year. In the case of hourly supplements, the portion corresponding to work performed in Spain must be deducted. Specific remuneration for displacement is also exempt, subject to a limit of 60,100 euros per year.

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