Skip to content
Back to index
V3699-15 24 November 2015 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · subrogación empresarial

Business subrogation does not imply multiple payers for the threshold to file a tax return

A query was raised regarding whether business subrogation constitutes having more than one payer for the purpose of determining the obligation to file an Income Tax (IRPF) return. The Directorate General of Taxes (DGT) ruled that, in such cases, the new employer maintains the status of the same employer.

The question raised

For the purpose of determining the obligation to file for the 2015 period, an inquiry is made regarding the existence of one or two payers as a consequence of business subrogation.

The DGT's ruling

In cases of business subrogation, the transferee maintains the status of the same employer for the purposes of determining the applicable withholding tax rate. Therefore, there is no existence of more than one payer for the purposes of the obligation to file a tax return. The threshold for not being required to file remains at 22,000 euros per year, provided that the income is not subject to a fixed withholding rate.

Book your free first meeting