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V0005-14 3 January 2014 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · exención por trabajos en el extranjero

Application of foreign work exemption on salary and specific allowances

A company asks whether its technicians deployed abroad can benefit from the exemption under article 7.p) of the LIRPF on their salary and allowances, and whether this is compatible with meal allowance exemption. The DGT responds that it is possible if the conditions for deployment, non-resident entity, and destination country's taxation are met.

The question raised

Whether the application of the exemption provided for in letter p) of Article 7 of the Personal Income Tax Law is appropriate, both regarding the salary and the additional supplement, as well as the compatibility of this exemption with the provisions of Article 9.A.3.a) of the Tax Regulation.

The DGT's ruling

The exemption under Article 7.p) of the LIRPF is applicable to specific remuneration for relocation and to the proportional part of the salary accrued during the days of stay abroad. To this end, the work must be effectively performed outside of Spain for a non-resident entity in a country with an analogous tax and which is not a tax haven. This exemption is compatible with the per diem regime under Article 9.A.3.a) of the RIRPF. The maximum limit of the exemption is 60,100 euros per year.

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