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V1567-18 6 June 2018 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · rentas en especie

Private use of a vehicle provided to a professional must be valued at market value

A company provides vehicles on a rental basis to beauty consultants who are self-employed or professionals. The DGT clarifies that, as these do not constitute employment income, the private use of the vehicle is considered a benefit in kind from economic activity and must be valued at its normal market value.

The question raised

Valuation of remuneration in kind.

The DGT's ruling

The valuation rule of 20% of the vehicle cost is not applicable because the consultants receive income from economic activities and not from employment. The use of a vehicle for private purposes by a professional constitutes income in kind from an economic activity. Said income must be valued at its normal market value pursuant to Article 43 of the Personal Income Tax Law.

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