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V0231-22 9 February 2022 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · rendimientos del trabajo

Councillors' allowances for attending plenary sessions taxed as employment income, excluding travel expenses

A local council has requested clarification on whether €50 allowances for attending municipal plenary sessions are subject to Personal Income Tax (IRPF). The Directorate General for Taxes (DGT) has ruled that these amounts constitute employment income, with the exception of sums specifically allocated for travel and commuting expenses.

The question raised

Whether the receipt of said allowance is subject to taxation under Personal Income Tax (IRPF), and whether it must be included in the recipient's Personal Income Tax return.

The DGT's ruling

Remuneration paid to councillors by reason of their office is considered income from employment pursuant to Article 17.2 b) of the Personal Income Tax Law (LIRPF). Only the portion allocated by the institution for travel and displacement expenses is excluded from this consideration. The withholding regime applies equally whether the remuneration consists of fixed amounts or sums per attendance.

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