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V1762-15 3 June 2015 · SG de Impuestos sobre las Personas Jurídicas Criterion in force
IRPF · retribución en especie

Purchasing bicycles as benefits in kind is not exempt from Income Tax

A company has enquired whether purchasing bicycles for employees through flexible remuneration offers any tax advantages. The Directorate General for Taxes (DGT) has ruled that, unlike public transport allowances, the purchase of bicycles does not benefit from an exemption from Personal Income Tax (IRPF).

The question raised

Possibility of a tax deduction due to the inclusion of bicycle purchases in a flexible remuneration plan.

The DGT's ruling

The purchase of bicycles by the company for delivery to employees is not included in the exemption provided in Article 42.2.h) of the Personal Income Tax Law (LIRPF). Applying said exemption to bicycles would constitute an analogy prohibited by the General Tax Law. Therefore, the delivery of bicycles is considered in-kind employment income without any applicable exemption.

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