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V0500-16 8 February 2016 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · rendimientos del trabajo

Subsistence and accommodation allowances for business travel may be exempt from Income Tax if requirements are met

A query was raised regarding the tax treatment of subsistence and accommodation allowances paid by a company to an employee for business travel. The Directorate General for Taxes (DGT) ruled that these amounts are not taxable provided they comply with specific limits regarding amount, duration, and the nature of the expense.

The question raised

The tax treatment that, for the purposes of Personal Income Tax, must be applied to the allowances satisfied by the company for subsistence and accommodation expenses.

The DGT's ruling

Allowances for subsistence and accommodation are not subject to Personal Income Tax (IRPF) if the worker travels to a municipality other than their residence and habitual center. They must compensate for hospitality expenses, not exceed nine months in the new municipality, and respect the daily amount limits. For accommodation with overnight stays, only amounts justified in hotels or hospitality establishments are exempt, excluding residential rent.

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