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V0449-24 19 March 2024 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · rentas en especie

Master's degrees paid directly by companies are not treated as benefits in kind if required for the role

A query was raised regarding whether paying for employees' master's degrees constitutes a benefit in kind or cash income. The DGT ruled that if the company pays the invoice directly and the course is necessary for the professional activity, it does not constitute a benefit in kind.

The question raised

Taxation under Personal Income Tax (IRPF).

The DGT's ruling

Studies arranged and financed by the employer for the training or retraining of personnel are not considered benefits in kind when they are required for the development of their activities. If the employer provides money to the worker so that they may acquire the master's degree, the income shall be considered monetary.

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