Subrogated employees will not have two payers following a change of company
A change in company ownership does not necessarily imply a change in the worker's tax situation regarding the multiplicity of payers. This issue was recently resolved by the Directorate General of Taxes (DGT) in relation to business succession processes.
What the DGT has ruled
The inquiry analyzes whether, in the event of business succession pursuant to Article 44.1 of the Workers' Statute, an employee moves to having two payers for the purpose of determining their obligation to file an income tax return. The DGT has ruled that the transferee company maintains the status of the same payer for the determination of the withholding rate.
Consequently, the fact that a worker becomes part of a new employer's workforce due to subrogation does not result in the existence of more than one payer. The applicable regulations include Law 35/2006 on Personal Income Tax (IRPF), the Workers' Statute, and the General Tax Law.
What it means for you
If you are a worker affected by business subrogation, your tax situation regarding the number of payers remains unchanged. This is relevant for determining whether you are required to file an IRPF return.
If you do not receive other income besides that derived from your work, the limit for the obligation to file remains at €22,000 per year for employment income. The lower limit that usually applies when there are two or more payers will not apply, thus preventing the change of company from automatically forcing you to file because you exceeded a lower income threshold.
What you should do
It is necessary to verify that the change of company operation falls strictly within the figure of business succession provided for in the Workers' Statute. In situations of labor mobility for reasons other than subrogation, the existence of two payers could indeed alter the filing limits. It is recommended to assess each particular situation to ensure that the treatment of withholdings is correct following the business transition.
Frequently asked questions
- Must I file an IRPF return if my company changes owners through subrogation?
- If those are your only earnings and you do not exceed €22,000 per year, you will not be required to file.
- What happens if the change of company is not a legal subrogation?
- If the change of company does not occur through succession according to the Workers' Statute, it could be considered two payers, which would change the filing limits.