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V0493-22 10 March 2022 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · dietas

Justified accommodation and subsistence expenses up to €53.34 may be exempt from Income Tax

A worker inquired about applying tax exemptions for allowances when a company pays a lump sum without distinguishing between accommodation and subsistence. The Directorate General for Tax (DGT) ruled that accommodation costs may be exempt if justified, and subsistence costs are exempt up to the daily legal limit.

The question raised

In the event that the worker justifies the amount paid for accommodation expenses, it is questioned whether the exemption for the allowance received under a Convention could be applied up to the justified amount and, for the remainder, the exemption applied up to 53.34 euros, with the amount exceeding said limit being taxed.

The DGT's ruling

If the company pays a global allowance without itemizing concepts, the accommodation amount is exempt provided that the worker presents hospitality receipts. The remainder of the amount is considered subsistence and shall be exempt up to the limit of 53.34 euros per day in Spanish territory. Any excess over these limits or the failure to justify the accommodation shall be taxed as employment income.

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