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The DGT clarifies that monthly subsidies given by a company to employees for private vehicle leasing are considered income in kind and explains how they should be valued.
Question posed: Taxation in the Personal Income Tax (IRPF).
The subsidy or discount for the private use vehicle rental constitutes employment income in kind. Its valuation shall be the difference between the price offered to the public (deducting ordinary or common discounts) and the amount paid by the employee. The amount of the final installment paid by the employee through payroll deduction has no tax impact on Personal Income Tax.
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