Skip to content
Back to index
V2605-15 8 September 2015 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · rentas exentas con progresividad

Earnings from foreign work not counted in progressive tax rate calculation

The DGT confirms that income exempted from taxation due to foreign employment is not included when calculating the progressive tax rate on other income.

The question raised

Whether income exempt through the application of Article 7 p) of Law 35/2006 must be taken into account for the purpose of calculating the tax rate applicable to the remaining income.

The DGT's ruling

The employment income exempt under Article 7 p) of the Personal Income Tax Law (LIRPF) is not considered exempt income with progressivity. The regulations do not establish that this income must be taken into account to calculate the tax rate applicable to the remaining income of the tax period.

Book your free first meeting