Skip to content
Back to index
V2536-18 18 September 2018 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · subrogación empresarial

Business subrogation does not imply multiple payers for the income tax filing threshold

A query was raised regarding whether a business subrogation occurring within a single year results in two payers for the purpose of determining the obligation to file an Income Tax (IRPF) return. The Directorate General for Taxes (DGT) ruled that, in such cases, the new employer maintains the status of the same employer, and it is not considered that more than one payer exists.

The question raised

For the purpose of determining the obligation to file a tax return for the 2017 period, an inquiry is made regarding the existence of one or two payers as a consequence of business subrogation.

The DGT's ruling

In cases of business subrogation, the transferee maintains the status of the same employer for the determination of the applicable withholding rate. Therefore, there is no existence of more than one payer for the purposes of the obligation to file a tax return. The threshold for not being required to file a tax return shall be 22,000 euros per annum for income from employment.

Book your free first meeting