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V0620-20 31 March 2020 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · retribución en especie

Social assistance services paid by a company for employees constitute benefits in kind

A childcare and elderly care services company inquired whether vouchers purchased by its clients for their employees could be considered exempt benefits in kind. The Directorate General for Taxes (DGT) ruled that these services constitute benefits in kind and do not qualify for the health insurance exemption.

The question raised

Consideration of the services offered to the employees of the client companies of the applicant as remuneration in kind. In particular, whether they could be considered exempt remuneration in accordance with Article 42.3.c) of the LIRPF.

The DGT's ruling

The provision of social assistance services assumed by the company for its employees constitutes remuneration in kind. It is not possible to apply the exemption under Article 42.3.c) of the LIRPF, as said rule requires the payment of premiums or fees to insurance entities for health insurance, and not the mere provision of healthcare services. The valuation of this remuneration shall be carried out at its normal market value.

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