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V1511-20 21 May 2020 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · rendimientos del trabajo

Reimbursement of Bar Association fees paid by an employee constitutes employment income

A lawyer employed by a public entity has requested the reimbursement of Bar Association fees that they paid personally. The DGT has ruled that such reimbursement constitutes employment income and is subject to withholding tax.

The question raised

Whether the withholding tax applied is in accordance with personal income tax (IRPF) regulations.

The DGT's ruling

The reimbursement of professional association fees constitutes income from employment because the payment of such fees is a personal and direct obligation of the professional. As it is income from employment, the payer is obliged to apply the withholding tax on personal income tax (IRPF). Notwithstanding, these fees may be deducted as employment expenses in accordance with current regulations.

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