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V0027-22 4 January 2022 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · dietas

Allowances for travel to a different municipality may be exempt from Income Tax if certain limits are met

A query was raised regarding whether allowances paid for travel away from the usual place of work are subject to Income Tax (IRPF) and how to justify them. The Directorate General for Taxes (DGT) responds that these payments may be tax-exempt provided they meet requirements regarding travel, temporality, and quantitative limits.

The question raised

Whether said allowance is subject or not to taxation under IRPF, and whether the company's work order would suffice to justify it in the event that the worker incurs no food expenses.

The DGT's ruling

Allowances for subsistence and accommodation expenses in municipalities other than the habitual place of work and residence are exempt from Personal Income Tax (IRPF) provided they do not exceed the limits of 26.67 euros per day (without overnight stay in Spain) or 53.34 euros (with overnight stay in Spain). The travel must be to a municipality other than the habitual place of work and residence. The reality of the travel may be justified by any means of evidence admitted in Law, the assessment of which is the responsibility of the Administration.

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