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A worker inquired whether subsistence and accommodation allowances received for travel away from their usual workplace are exempt from Income Tax (IRPF). The Directorate General for Taxes (DGT) ruled that these are only exempt if accommodation expenses are incurred in hospitality establishments, thereby excluding residential rentals.
This ruling clarifies that using business travel allowances to pay for private residential rentals will result in these amounts being subject to Income Tax, as they do not meet the specific exemption criteria for hospitality-based accommodation.
The tax team reviews your specific situation.
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