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V0041-18 16 January 2018 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · rendimientos del trabajo

No requirement to file tax return if former MP's employment income is below €22,000

A former Member of Parliament and political party leader inquired whether they were required to file an income tax return for 2017 earnings. The Directorate General for Taxes (DGT) ruled that travel expenses paid by the political party do not constitute income, but are instead expenses incurred on behalf of a third party. Consequently, the obligation to file depends on whether total employment income exceeds the legal thresholds.

The question raised

With the data referred to above, the question is asked regarding the obligation to file a tax return for the 2017 tax period.

The DGT's ruling

Travel and accommodation expenses paid by a political party do not constitute income for the leader if they are considered expenses incurred on behalf of a third party, due to the absence of an employment relationship. Therefore, the obligation to file a tax return is governed by Article 96 of the Personal Income Tax Law. In this case, there would be no obligation if income from employment as a former parliamentarian did not exceed 22,000 euros per year.

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