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V0492-24 4 April 2024 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · rendimientos del trabajo

Travel expense allowances for governing board members may be tax-exempt if their nature is proven

A query was raised regarding whether travel expense reimbursements for members of a professional association's governing board are subject to Personal Income Tax (IRPF). The Directorate General for Taxes (DGT) indicates that the standard per diem regime does not apply due to the absence of an employment relationship; however, no taxable income will arise if it is proven that the amount strictly compensates for expenses or if the association provides the means of transport.

The question raised

Taxation under Personal Income Tax (IRPF) of compensations to the members of the Governing Board of a Professional Association for travel expenses corresponding to trips to attend representation acts or organizational meetings.

The DGT's ruling

The per diem regime under Article 9 of the Tax Regulation is not applicable to members of the governing board due to the absence of an employment relationship of subordination. There shall be no income if the professional association directly provides the means of transport or if it is proven that the amount strictly compensates for travel expenses. If the payer only reimburses expenses without certifying their purpose or pays an amount for the free choice of means, the amount shall be considered monetary income subject to Tax.

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