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A sports entity has enquired whether a fixed daily amount of 10 euros provided to its volunteers for travel expenses is exempt from tax. The DGT has ruled that these amounts constitute employment income subject to tax, unless the entity directly provides the means of transport or accommodation.
This ruling clarifies that fixed allowances for volunteers are taxable as employment income, meaning entities must account for tax withholdings unless they provide in-kind benefits such as direct transport or lodging.
The tax team reviews your specific situation.
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