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V1873-20 10 June 2020 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · rentas en especie

Provision of vehicles may constitute benefits in kind if used for private purposes

A company has requested clarification on whether providing passenger vehicles to its sales staff for work purposes constitutes a benefit in kind. The Directorate General for Taxes (DGT) indicates that the existence of such a benefit depends on whether the vehicles are actually used or made available for private purposes.

The question raised

Whether the provision of vehicles may constitute payment in kind for employees.

The DGT's ruling

Payment in kind occurs when goods are used, consumed, or obtained for private purposes. In cases of simultaneous professional and private use, a distribution criterion must be established that values availability for private purposes. Criteria based on hours of use or mileage are not acceptable, as the determining parameter is availability. Availability for private purposes is not understood to exist if the vehicle remains at the company headquarters during non-working periods.

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