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V1444-22 20 June 2022 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · dietas

Allowances for travel to municipalities other than the usual place of work may be exempt from Income Tax

A sales representative has enquired whether the daily allowance of €15.77 received for their route is exempt from Income Tax (IRPF) withholding. The Directorate General for Taxes (DGT) has ruled that these amounts are not taxable, provided they are received for travel to municipalities other than the usual place of work and residence, and that they comply with the prescribed quantitative limits.

The question raised

Whether said referred allowance is exempt from IRPF withholding tax.

The DGT's ruling

Allowances for subsistence and lodging expenses are not taxable if received for travel to municipalities other than the habitual place of work and residence. For the subsistence allowance to be exempt, it must not exceed 26.67 euros per day in Spain or 48.08 euros abroad if no overnight stay occurs. The payer must certify the date, location, and reason for the travel, although it is not necessary to certify the exact amount provided the limits are respected.

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