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V0171-25 14 February 2025 · SG de Operaciones Financieras Criterion in force
IRPF · rendimientos del trabajo

Premiums for a collective life and disability insurance policy constitute benefits in kind from employment

An entity inquired about the taxation of premiums for a collective life and disability insurance policy for its personnel. The DGT responds that these premiums constitute benefits in kind from employment for the insured parties.

The question raised

Question posed: Taxation of the premium under Personal Income Tax.

The DGT's ruling

Insurance premiums paid by the company as the policyholder for the benefit of its personnel constitute benefits in kind. These shall be valued at their amount or at the cost to the payer, with the corresponding withholding tax to be added. This criterion is based on the fact that they are considerations derived from the employment relationship and are obtained free of charge by the employee.

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