Displaced workers under the special regime cannot request early payment for large families

The application of the special taxation regime for displaced workers raises doubts regarding the compatibility of certain state deductions. Recently, the Directorate General of Taxes (DGT) has specified the scope of this regime in relation to deductions for family burdens.

What the DGT has ruled

The query concerned the possibility of requesting the early payment of the large family deduction by submitting Form 143. The advisory body has determined that the application of the special regime provided for in Article 93 of the Personal Income Tax Law (LIRPF) carries a direct consequence for the calculation of the tax debt.

By opting for this regime, the determination of the debt is carried out following the rules of Non-Resident Income Tax. Consequently, Article 81 bis of the LIRPF, which regulates deductions for large families or dependents with disabilities, is not applicable to these taxpayers.

What this means for you

If you are a displaced worker or professional who has decided to opt for the special regime under Article 93 of the LIRPF, you must take into account that you lose the right to apply the large family deduction. This implies that:

• You will not be able to include the deduction for having large family status in your tax return.
• You will not be able to use Form 143 to request the early payment of said deduction.
• Your taxation will be strictly governed by the rules for non-residents, which limits access to certain tax benefits specific to the general regime for residents.

What you should do

Since the choice of taxation regime has definitive effects on the available deductions, it is necessary to evaluate your family situation and tax burden before formalizing the option for the special regime. Each displacement situation presents particularities that must be analyzed to determine whether the tax savings derived from the special regime compensate for the loss of deductions for family burdens or disability.