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V1658-17 27 June 2017 · SG de Tributación de las Operaciones Financieras Criterion in force
IRPF · rendimientos del trabajo

Company-paid life insurance premiums constitute benefits in kind

A query was raised regarding whether annual life insurance premiums paid by a company should be subject to tax for the employee. The Directorate-General for Taxes (DGT) ruled that such premiums must be attributed to the insured person as employment income in kind.

The question raised

Whether the annual premium corresponding to death insurance may be subject to tax attribution to the taxpayer.

The DGT's ruling

Contributions made by employers for pension commitments must be attributed to the persons linked to the benefits. In contracts covering retirement and death, attribution is mandatory for the portion of the premium corresponding to the capital at risk due to death or disability, provided it exceeds 50 euros annually. In the case of death insurance, the premium paid by the company must be attributed to the taxpayer as income in kind from employment.

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