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V0662-19 26 March 2019 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · asignaciones para gastos de manutención

Meals and accommodation allowances lose tax exemption if staying in the same municipality for over nine months

The DGT confirms that maintenance and accommodation allowances are exempt from IRPF only if the beneficiary stays continuously in the same municipality for no more than nine months.

The question raised

Question posed: What is the maximum period within the fiscal year in which the company can pay allowances for subsistence and accommodation expenses without overnight stays, exempt from taxation.

The DGT's ruling

Allowances for subsistence and accommodation expenses are exempt from Personal Income Tax (IRPF) provided that requirements such as the temporal limit of not remaining more than nine months in each municipality other than the habitual one are met. The calculation of this period is performed from date to date and is not interrupted on December 31. If this period of nine continuous months in the same municipality is exceeded, the allowances lose the exemption and are taxed in their entirety. The nine-month limit applies independently to each municipality.

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