Back to index
V0640-20 31 March 2020 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · retribución en especie

Tax-exempt nursery expenses as benefits in kind do not qualify for increased maternity tax relief

A query was raised regarding whether childcare costs paid by an employer as tax-exempt benefits in kind can be included when calculating the increase for the maternity tax deduction. The Directorate General for Taxes (DGT) ruled that only childcare expenses that are not classified as tax-exempt benefits in kind can be taken into account.

The question raised

Compatibility between the exemption provided for in Article 42.3.b) and the increase in the maternity deduction under Article 81.2 of the Personal Income Tax Law.

The DGT's ruling

Childcare expenses paid by the company through tax-exempt benefits in kind pursuant to Article 42.3.b) of the Personal Income Tax Law (LIRPF) do not entitle the taxpayer to the increase in the maternity deduction. The increase in the deduction shall be applied proportionally to the months in which childcare expenses are satisfied that are not exempt benefits in kind. Only expenses paid directly by the taxpayer or the other parent may form part of the deduction base.

Book your free first meeting