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V0155-16 19 January 2016 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · retribución flexible

Training paid for by the company is not taxed as benefits in kind if it is required for the development of the activity or the position

A company inquires about the implementation of a flexible remuneration system that replaces part of the cash salary with training services. The DGT clarifies that training is not income in kind if it is necessary for the development of the activities or the job position.

The question raised

Question raised: Impact on Personal Income Tax (IRPF) taxation.

The DGT's ruling

Training services are not considered benefits in kind when they are intended for the updating, training, or retraining of personnel and are required by the development of their activities or the characteristics of their position. The requirement of such necessity may be proven through the means of evidence admitted in Law, with the Administration being responsible for assessing whether the evidence is sufficient.

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