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A transport company has enquired whether its drivers' meal allowances are exempt from Income Tax if the employees do not spend them in restaurants. The Directorate-General for Taxes (DGT) has ruled that, provided the travel requirements are met, it is not necessary for the expenditure to be incurred in catering establishments.
This ruling clarifies the tax treatment of meal allowances, confirming that the exemption from Income Tax depends on the nature of the travel and the purpose of the expense rather than the specific type of establishment where the money is spent.
The tax team reviews your specific situation.
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