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V1323-19 6 June 2019 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · rendimientos del trabajo

Travel expenses may be exempt from income tax

The DGT confirms that travel, subsistence and accommodation costs for employees moving to other municipalities may be exempt if they meet displacement criteria and quantitative limits set out in the Regulation.

The question raised

Question posed: Whether the payment of the aforementioned amount to the employee is considered exempt from taxation or subject to withholding.

The DGT's ruling

Allowances for subsistence and lodging expenses are not taxable if the worker travels to a municipality other than their habitual place of work and residence. For per diem allowances involving overnight stays, lodging expenses must be justified and subsistence must not exceed 53.34 euros per day in Spain. If there is no overnight stay, subsistence is limited to 26.67 euros per day within the national territory. The payer must certify the date, location, and reason for the travel.

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