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V1235-20 4 May 2020 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · rendimientos del trabajo

Travel and accommodation expenses for referees are not exempt from Income Tax without an employment relationship

A sports referee inquired whether compensation for overnight stays and travel expenses is exempt from taxation. The Directorate General for Taxes (DGT) ruled that, as there is no employment relationship with the federation, the exemption for allowances cannot be applied, and the amount must be taxed as employment income.

The question raised

Whether the economic compensations received for said work are exempt from taxation, or alternatively, what part of them could be considered a deductible expense when calculating the corresponding net income.

The DGT's ruling

The income of referees is classified as employment income as there is no organization of their own means of production. Allowances for travel, subsistence, and accommodation expenses do not benefit from the exemption under Article 9 of the RIRPF due to the lack of an employment relationship. If the federation directly provides transport or accommodation, there is no income; however, if it reimburses expenses without proving their strict necessity or pays lump-sum amounts, they are taxed as employment income. Deductible expenses are limited to those provided for in Article 19.2 of the LIRPF.

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