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V3378-14 23 December 2014 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · exención por trabajos en el extranjero

Foreign work exemption requires service to a non-resident entity

A company asks whether employees sent to Algeria can benefit from the exemption under article 7.p) of the LIRPF. The DGT explains that the exemption applies only if the work is carried out for a non-resident entity or a foreign permanent establishment, meeting intragroup service requirements.

The question raised

Tax residence of employees seconded between September 2014 and June 2016. In the event of tax residence in Spain, whether the exemption established in letter p) of Article 7 of the Personal Income Tax Law applies to both the salary and the additional supplement, and the method of calculation. Compatibility of this exemption with the provisions of Article 9.A.3.a) of the Personal Income Tax Regulations.

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