Back to index
V2958-19 24 October 2019 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · exención

Foreign work exemption requires recipient to be non-resident or foreign permanent establishment

A worker posted to Mexico asks whether he can benefit from the exemption for foreign work income. The DGT states that eligibility depends on the recipient entity being a non-resident company or a foreign permanent establishment, and on compliance with all other legal requirements.

The question raised

Question posed: Whether the exemption regulated in Article 7 p) of the Personal Income Tax Law is applicable.

The DGT's ruling

To apply the exemption under Article 7.p) of the LIRPF, the work must be performed for a non-resident company or a permanent establishment abroad. Furthermore, in the territory where the work is performed, a tax of an identical or analogous nature must apply, and it must not be a tax haven. In the case of Mexico, the requirement regarding the existence of a double taxation treaty with an exchange of information clause is met.

Apply this to a real case

What is published here, applied to a company or a specific case. The first meeting is free.

Book a meeting Write to the firm
Email
Contact