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V5096-16 24 November 2016 · 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 purpose of the obligation to file tax returns

A query was raised regarding whether business subrogation at a workplace constitutes having more than one payer for determining the obligation to file personal income tax (IRPF) returns. The Directorate General for Taxes (DGT) ruled that the new employer retains the status of the same employer, meaning there is not more than one payer.

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 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 being required to file a tax return shall be 22,000 euros per annum for income from employment.

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