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An official from the Regional Government of Andalusia enquired whether the 'geographical dispersion' allowance for travel using a private vehicle was exempt from Personal Income Tax (IRPF). The Directorate General for Taxes (DGT) ruled that only the portion compensating for travel expenses, subject to the limits and conditions set out in the Regulations, may be exempt.
This ruling clarifies that geographical dispersion allowances are generally taxable unless they strictly correspond to the reimbursement of travel expenses within the statutory limits.
The tax team reviews your specific situation.
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