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V1271-21 6 May 2021 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · retribución en especie

Company payment for an employee's private medical insurance is not an exempt benefit in kind

A query is made as to whether the amount included in the payroll by a company to enable the worker to pay for their own medical insurance constitutes an exempt benefit in kind. The DGT responds that, as the employee is the policyholder, it constitutes monetary remuneration and not an exemption in kind.

The question raised

Question posed: Whether the amount paid by the company is considered an exempt benefit in kind for the purposes of the worker's Personal Income Tax.

The DGT's ruling

When the company acts as a payment intermediary to enable the worker to acquire a service, it constitutes monetary remuneration and not a benefit in kind. For the payment of medical insurance to be an exempt benefit in kind, it must be agreed upon in the contract or collective agreement and the company must provide the service. In this case, as the employee is the policyholder of the insurance, the amount is monetary remuneration that does not benefit from the exemption under Article 42.3.c) LIRPF.

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