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V1130-15 13 April 2015 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · rendimientos del trabajo

Insurance premium reimbursement deemed cash remuneration

A worker asks whether partial reimbursement of private medical insurance premiums can be considered a non-cash remuneration exemption. The DGT responds that since the amount is paid in cash, it constitutes cash remuneration subject to withholding.

The question raised

Possible application of the provisions of Article 42.2.f) of Law 35/2006, for the purposes of its consideration in the 2014 Personal Income Tax (IRPF) return.

The DGT's ruling

When the payer provides cash amounts to the taxpayer for the acquisition of goods, rights, or services, the income is considered monetary. In this case, as it constitutes a reimbursement of medical insurance expenses, it is established as monetary remuneration subject to withholding tax on behalf of Personal Income Tax (IRPF).

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