Article 7p of the law on the tax on the personal income tax (IRPF) allows the exemption of income from work obtained abroad, with a limit of 60,100 euros per year.

Due to the great tax savings that the application of this exemption entails, the Tax Agency regularly carries out limited data checks, information requests from companies, and inspections, requiring the provision of supporting documentation of the income obtained abroad.

Failure to comply with the procedures required by the Tax Administration, will imply the loss of the right to exemption, together with the tax obligation to return the unpaid personal income tax payments and their corresponding surcharges and penalties. This will affect both the employee and the company, which has made an incorrect withholding of the remuneration paid by the worker. These evidentiary tasks are also being required in cases where the company has withheld without taking into account the exemption, while the worker has practiced it on his income tax return.

Before a verification, it is important to present the answer within the established period, providing all the documentation claimed. Therefore, a rigorous record of all the information and a correct calculation of the exemption to apply is necessary.

How can we help you with an exemption review?

At Addwill, we have the TravelTracker program, which allows you to record all documentation related to travel. Thanks to TravelTracker, the documentation will be registered and before a review, we will be able to answer by presenting all the information claimed.

By having the necessary documentation, we can calculate the exemption correctly, and thus avoid future sanctions or inconsistencies between what is declared by the company and the worker. Likewise, you will have the support of a team of lawyers and economists specialized in tax advice, throughout the whole review procedure.