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V4010-15 15 December 2015 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · subrogación empresarial

No more than one payer is considered to exist in cases of business subrogation for declaration limits

A query was raised regarding whether business subrogation implies having two payers for the purpose of determining the obligation to file an Income Tax (IRPF) return. The Directorate General for Taxes (DGT) responds 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 a tax return 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 assignee maintains the status of the same employer for the purposes of determining the applicable withholding 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 a tax return shall be 22,000 euros per annum for income from employment.

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