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V5391-16 21 December 2016 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · subrogación empresarial

The €22,000 threshold for filing tax returns in cases of business subrogation remains unchanged

A query was raised regarding whether business subrogation implies having more than one payer for the purposes of the mandatory tax filing threshold. The Directorate General for Taxes (DGT) ruled that, in such instances, the new employer maintains the status of the same employer.

The question raised

Regarding the threshold determining the obligation to file, it is asked whether the consideration of a single payer is correct in legal cases of "worker subrogation," given that in the 2016 fiscal year, there were two different companies where the individual provided labor services.

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, provided there are no earnings subject to a fixed withholding rate.

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