Registration of documentation necessary for the exemption for work abroad

We remind you that the current year is coming to an end and, with a view to the 2022 Income Tax Return, it is important that you collect all the necessary information in the event that you have employees to whom the exemption for work performed abroad.

This exemption is regulated in article 7p) of the Personal Income Tax Law (IRPF) and allows the income received for work actually carried out abroad to be declared exempt from IRPF, with a limit of 60,100 euros per year.

For the application of this tax benefit, it is essential, both for the company in compliance with its withholding obligations, and for the employee for the purpose of declaring their Personal Income Tax, to have all the necessary documentation that proves the trips to benefit without tax risks to that exemption.

Failure to comply with the documentation obligations required by the Tax Administration would imply the loss of the right to exemption, together with the tax obligation of the return of unpaid IRPF fees and their corresponding surcharges and penalties. This would affect both the employee and the company.

From addwill we can help and assist you with our outsourcing service through the TravelTracker program, which allows you to record all the documentation related to displacements and calculate the exemption correctly, in order to avoid sanctions or inconsistencies between what is declared by the company and the worker.

The outsourcing of this documentation registration service guarantees a rigorous registration and the correct application of article 7p) of the IRPF, since we have specialists in tax advice who will take care of verifying all the necessary information and determining the appropriate application of the exemption.

For more information, we invite you to visit our post in this regard “How to manage the exemption in Personal Income Tax for work carried out abroad through an innovative software” on the addwill website.

We are at your disposal if you want more information or require advice on this matter from our professionals. You can contact us by phone + 34 934 875 200 or email info@addwill.eu.