Skip to content
Back to index
V0620-22 23 March 2022 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · retribución en especie

RENFE train ticket discounts for employees constitute taxable benefits in kind

A RENFE employee inquired whether discounts on train tickets used for commuting to work are exempt from Personal Income Tax (IRPF). The Directorate General for Tax (DGT) ruled that, as these are generalised discounts rather than direct payments to the transport entity, they constitute taxable benefits in kind.

The question raised

Question posed: Whether the exemption under Article 42.3. e) of the LIRPF is applicable.

The DGT's ruling

The use of transport at a price below the normal market rate constitutes remuneration in kind. The exemption under Article 42.3. e) of the Personal Income Tax Law (LIRPF) does not apply because the benefit does not consist of amounts paid to the transport entity for travel, but rather in generalized discounts on tickets. The valuation of this remuneration shall be the difference between the price offered to the public (deducting ordinary or common discounts) and the amount paid by the employee.

Email
Contact