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A sales representative has enquired whether the daily allowance of €15.77 received for performing their route is exempt from Income Tax (IRPF) withholding. The Directorate General for Tax (DGT) has ruled that these amounts are not taxable, provided that the travel requirements and the quantitative limits set out in the Regulations are met.
This ruling clarifies the tax treatment of subsistence allowances for employees travelling to different municipalities, confirming that they remain non-taxable as long as they comply with specific regulatory limits and travel criteria.
The tax team reviews your specific situation.
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