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V0546-17 2 March 2017 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · gastos de locomoción

Reimbursements for travel expenses outside the workplace may be exempt from Income Tax

The Court of Auditors has enquired whether a daily payment of 8 euros for travel within Madrid is exempt from Income Tax. The Directorate General for Taxes (DGT) has responded that these amounts may be exempt provided they comply with the limits and conditions set out in the Income Tax Regulations.

The question raised

Whether the amounts paid as travel expenses within the municipality of Madrid can be considered exempt from taxation, in accordance with the provisions of RD 462/2002, of 24 May, on indemnities by reason of service, the LIRPF and the RIRPF.

The DGT's ruling

Amounts to compensate for travel expenses outside the workplace are exempt if public transport is used (amount justified by invoice) or otherwise (0.19 euros per kilometer plus tolls and parking, justifying the trip). Any excess over these limits is subject to taxation as employment income. The reality of the trip must be justified by means of evidence admitted in Law.

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