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V2485-19 ·17 September 2019 ·consulta-vinculante Medium impact
Tax

Subsistence and accommodation allowances are exempt from Income Tax if regulatory limits and requirements are met

A worker inquired whether it is correct to have Income Tax (IRPF) withheld from subsistence allowances that do not exceed legal limits. The Directorate General for Taxes (DGT) ruled that these allowances are exempt from taxation and withholding, provided that the displacement requirements and established quantitative limits are satisfied.

In 6 key points

How it affects those involved

This ruling clarifies the tax-exempt status of specific work-related allowances, ensuring that employees and employers correctly apply withholding rules for travel and subsistence expenses.

Lifecycle

2019-09-17PublishedPublished in the BOE
Official text Based on BOE data (boe.es). Information, not advice.

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This analysis is informational only and does not constitute legal advice or create a client-adviser relationship. BM Consulting.
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