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V0413-19 ·27 February 2019 ·consulta-vinculante Medium impact
Tax

Vehicle leasing for private use may be treated as benefits in kind or cash remuneration depending on the agreement

A company has enquired whether providing employees with access to renting contracts, with the cost deducted from their salary, constitutes a benefit in kind. The Directorate-General for Tax (DGT) clarifies that if it is merely a payment mediation service, it is cash remuneration; however, if it is stipulated in a contract or collective agreement as a benefit, it is classified as a benefit in kind.

In 6 key points

How it affects those involved

This ruling clarifies the tax treatment of vehicle access schemes, distinguishing between simple payroll deductions and formal employment benefits.

Lifecycle

2019-02-27PublishedPublished in the BOE
Official text Based on BOE data (boe.es). Information, not advice.

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This analysis is informational only and does not constitute legal advice or create a client-adviser relationship. BM Consulting.
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