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An employee inquired whether the reimbursement of certification course costs for their job is subject to Personal Income Tax (IRPF) withholding. The Directorate General for Tax (DGT) ruled that, as the funds are paid directly to the worker, they are considered monetary income subject to withholding.
This ruling clarifies that direct reimbursements for professional training, when paid as cash to the employee, must be treated as taxable employment income rather than non-taxable expense recovery.
The tax team reviews your specific situation.
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