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A company has enquired whether the accommodation portion of a per diem is exempt from Personal Income Tax (IRPF) if the employee stays in a rented flat instead of a hotel. The Directorate General for Tax (DGT) has ruled that the exemption only applies to expenses incurred in hotels and hospitality establishments.
Companies must ensure that per diem payments for accommodation are only treated as tax-exempt when the employee stays in official hospitality establishments; using private rental properties may trigger tax liabilities for the employee.
The tax team reviews your specific situation.
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