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V4672-16 3 November 2016 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · subrogación empresarial

Multiple payers not considered in cases of business succession for tax filing thresholds

A worker inquired whether, following a business succession, they would have two payers for the purpose of determining their obligation to file an Income Tax (IRPF) return. The Directorate General for Taxes (DGT) ruled that, in such instances, the new employer maintains the status of the same employer, and the existence of more than one payer is not considered.

The question raised

For the purposes 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 transferee maintains the status of the same employer for the determination of the withholding rate. Therefore, there is no existence of more than one payer of employment income. The threshold for the obligation to file a tax return shall be 22,000 euros per annum, provided that the income is not subject to a fixed withholding rate.

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