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V0634-22 24 March 2022 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · dietas

Daily subsistence allowances for travel to different municipalities may be exempt from Income Tax

A sales representative has enquired whether the daily allowance of €15.77 received for performing their route is exempt from Income Tax (IRPF) withholding. The Directorate General for Tax (DGT) has ruled that these amounts are not taxable, provided that the travel requirements and the quantitative limits set out in the Regulations are met.

The question raised

Whether said allowance is exempt from IRPF withholding tax.

The DGT's ruling

Maintenance allowances are not taxable if received for travel to municipalities other than the habitual place of work and residence. For the exemption to be applicable, allowances must not exceed the limits of 26.67 euros per day in Spain (without overnight stay) or 53.34 euros (with overnight stay). The payer must certify the day, place, and reason for the travel, although it is not necessary to justify the exact amount if it does not exceed the limits.

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