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V1551-14 12 June 2014 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · rendimientos del trabajo

Allowances for attending council meetings are taxed as employment income

A councillor has enquired whether income received for attending municipal plenary sessions must be subject to Personal Income Tax (IRPF). The Directorate General for Taxes (DGT) has ruled that these amounts constitute employment income, excluding travel and commuting expenses.

The question raised

Tax treatment that must be applied to said allowances for the purposes of Personal Income Tax.

The DGT's ruling

Remuneration paid to councillors by reason of their office is considered income from employment pursuant to Article 17.2 b) of Law 35/2006. The portion allocated by the institution for travel and displacement expenses is excluded from this treatment.

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