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V2651-23 29 September 2023 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · subrogación empresarial

Business subrogation does not constitute the existence of multiple payers

An employee inquired whether a change of employer due to business subrogation implies having two payers for Income Tax (IRPF) purposes. The Directorate General for Taxes (DGT) ruled that, due to the succession of the business, the new company retains the status of the same payer.

The question raised

Inquiry regarding the existence of more than one payer for the purpose of determining the obligation to file a tax return for IRPF-2022.

The DGT's ruling

In the event of a business succession, the transferee company maintains the status of the same payer for the purpose of determining 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 for income from employment. This occurs provided that the terms of business succession provided for in labor and tax regulations are met.

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