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A company has requested clarification on how to justify mileage payments made to employees to ensure they are not subject to taxation. The Directorate General for Taxes (DGT) clarifies that these amounts are exempt provided the reality of the journey is proven and the limits of €0.26 per kilometre, plus tolls and parking, are respected.
This ruling provides legal certainty for companies regarding the tax treatment of mileage reimbursements, ensuring that compliant payments do not constitute taxable income for employees.
The tax team reviews your specific situation.
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