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V1179-17 17 May 2017 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · dietas de manutención

Meal allowances do not require proof of exact amount to be exempt from Income Tax

An employee enquired whether the difference between a meal allowance received and the actual restaurant bill was subject to Income Tax. The Directorate General for Taxes (DGT) ruled that, provided quantitative limits are respected, the entire allowance is exempt without the need to prove the exact amount spent.

The question raised

Whether the difference between the subsistence per diem received and the expense appearing on the restaurant invoice is exempt from Personal Income Tax (IRPF).

The DGT's ruling

Allowances for subsistence expenses are exempt from taxation provided they do not exceed the limits established in the Tax Regulations (26.67 euros without overnight stay or 53.34 euros with overnight stay within national territory). For them to be considered exempt, the amounts do not require accreditation regarding their amount, although the payer must certify the day, place, and reason for the travel. Therefore, the per diem is exempt regardless of whether the expense on the restaurant invoice is higher or lower than said limits.

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