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V4034-15 16 December 2015 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · subrogación empresarial

Business subrogation does not imply two payers for the tax filing threshold

A query was raised regarding whether a worker subject to business subrogation has one or two payers for determining their personal income tax (IRPF) filing obligation. The Directorate General for Taxes (DGT) ruled that, in cases of subrogation, 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 purpose 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 filing shall be 22,000 euros per annum for employment income, provided that such income is not subject to a fixed rate.

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