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V0996-20 22 April 2020 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · renta

Health expense reimbursements are not subject to Personal Income Tax

A taxpayer queried whether payments received from the Canary Islands Health Service to cover accommodation, subsistence, and travel costs for medical treatment were subject to Personal Income Tax (IRPF). The Directorate General for Taxes (DGT) ruled that these amounts do not constitute taxable income.

The question raised

Whether said amount is subject to taxation under Personal Income Tax.

The DGT's ruling

Financial aid for medical expenses not covered by the Health Service, intended for treatment or health restoration, is not considered income subject to Tax. Compensations for accommodation, subsistence, and travel received due to healthcare assistance outside the area of residence are considered equivalent to the provision of the health protection service itself. As they do not represent an increase in assets, they do not involve the acquisition of income for the taxpayer.

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