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A civil servant inquired whether it was correct to apply income tax (IRPF) withholdings to subsistence and accommodation allowances received during service assignments. The Directorate-General for Tax (DGT) clarified that these amounts are exempt provided they do not exceed the limits set by the Regulations and the period is less than nine months.
This clarification provides certainty for civil servants regarding the tax treatment of travel and subsistence allowances, ensuring that temporary residence payments are not incorrectly taxed when they meet specific regulatory criteria.
The tax team reviews your specific situation.
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