Skip to content
Back to index
V3194-19 18 November 2019 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · subrogación empresarial

Business transfers maintain a single payer status and the threshold for filing income tax returns is €22,000

A query was raised regarding whether an employee must notify the Tax Agency of a business transfer to determine their obligation to file an income tax return. The DGT ruled that, as there remains a single payer, the income threshold for not being required to file is €22,000, and there is no obligation to report the business transfer.

The question raised

Given that, according to the criteria of the Directorate General of Taxes, in cases of business subrogation it is considered that there is a single payer (for the purposes of determining the obligation to file the Personal Income Tax return), the question is whether the subrogation must be communicated to the Tax Agency.

The DGT's ruling

In cases of business succession, the transferee company maintains the status of the same payer for the purpose of determining the applicable withholding rate. As it is considered a single payer of employment income, the threshold for the obligation to file a tax return is 22,000 euros per annum. The regulations do not establish an express obligation for the affected employees to communicate the subrogation to the Tax Administration.

Book your free first meeting