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V2847-19 15 October 2019 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · exención

Exemption for foreign work not applicable to business income

A Spanish technical architect asks whether the foreign work exemption applies to earnings from a Dominican business. The DGT states that the exemption applies only to income from employment, not to income from economic activities.

The question raised

Whether the exemption provided in letter p) of Article 7 of the Personal Income Tax Law is applicable.

The DGT's ruling

The exemption provided in Article 7(p) of the LIRPF is not applicable to income derived from the exercise of economic activities. The term "work" refers exclusively to employment income as defined in Article 17.1 of the LIRPF, derived from an employment or statutory relationship, or the cases set forth in Article 17.2. Since the taxpayer's income constitutes income from economic activities, the exemption does not apply.

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