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V0909-19 26 April 2019 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · retribución en especie

Exempt nursery expenses paid as benefits in kind do not qualify for the maternity deduction increase

A query was raised regarding whether nursery expenses paid by a company via vouchers, which are exempt from Personal Income Tax (IRPF), can be counted towards the maternity deduction increase. The Directorate General for Taxes (DGT) ruled that, as they constitute exempt benefits in kind, they cannot be used for the deduction.

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 that are considered exempt benefits-in-kind under Article 42.3.b) of the Personal Income Tax Law (LIRPF) shall not entitle the taxpayer to the increase in the maternity deduction provided for in Article 81.2 of the same law. The legal text expressly establishes that, for the purpose of the increase in the deduction, childcare expenses shall only be understood as the amounts paid that are not considered exempt benefits-in-kind.

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