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V1550-18 6 June 2018 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · rentas en especie

Electricity bill discounts under collective agreements constitute benefits in kind for Income Tax purposes

A widow inquired whether a discount on her electricity bill, granted by her late husband's former employer, is subject to taxation. The DGT ruled that while it is not subject to Inheritance Tax, it must be taxed as a benefit in kind for Income Tax purposes.

The question raised

Taxation of the discount.

The DGT's ruling

The discount on the electricity invoice, derived from a social benefit of a collective bargaining agreement for the widow of an employee, does not constitute an acquisition by inheritance. As the procurement of electrical energy at a price lower than the normal market price, it constitutes remuneration in kind for work pursuant to Article 42.1 of Law 35/2006.

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