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V3009-20 ·6 October 2020 ·consulta-vinculante Medium impact
Tax

Prepaid incentive cards that are not electronic money are treated as benefits in kind

A taxpayer queried whether incentive cards (one nominative and one with limited use) constitute cash remuneration or benefits in kind. The DGT ruled that, as they do not qualify as electronic money, they are considered employment income in kind.

In 6 key points

How it affects those involved

Companies providing incentive cards that do not meet the legal definition of electronic money must treat them as taxable benefits in kind for employees, affecting payroll tax and social security contributions.

Lifecycle

2020-10-06PublishedPublished 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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