Globalization makes the internationalization of companies and their workers increasingly recurrent. The trips of these employees can benefit from the exemption on income from work obtained abroad, by virtue of article 7p of the Personal Income Tax Law, as long as the trips and the reasons for them.

What is the article 7p) of the Personal Income Tax law?

Article 7p) of the Personal Income Tax allows declaring, as exempt in personal income tax, the income received for work actually carried out abroad, with a limit of 60,100 euros per year.

By applying this article, the competitiveness of Spanish companies in the international market is encouraged, favoring the displacement of workers. This movement of workers creates a greater work experience that, later, can be used in the firms of origin.

What documents are needed to qualify for the exemption?

As it is a very beneficial exemption, it is important to have the supporting documentation about the trips to qualify for its application. Due to the succulent exemption, the Tax Administration performs periodic reviews on the correct application of the article. In a case of review, that documentation will be a key element in order not to lose the right to exemption, or be subject to sanctions.

The documentation to be provided must demonstrate the actual displacement and prove that the work has been effectively carried out from abroad and not remotely; This includes very diverse information that goes from the contract of the work carried out abroad to the airplane tickets.

The activity of collecting documentation through a registry can be a complex task that requires many hours of dedication, depending on the number of workers and their trips.

How we can help you and what are the advantages of outsourcing the management of the supporting records

Through TravelTracker program, we take care of managing the information related to travels, together with their correct registration. We want to make it easier for companies, and their workers, the work and consequent additional burden of managing all the necessary documentation to qualify for the exemption.

Furthermore, you will have a support of specialists in tax advice, who will be in charge of verifying the information, making sure that all the necessary information is available, answering questions and determining the application of the exemption.

The outsourcing of the registration of the supporting documentation ensures a rigorous registration and the correct application of article 7p) of the Personal Income Tax.