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V1899-18 27 June 2018 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · retribución en especie

Free canteen services may be exempt from Personal Income Tax if regulatory requirements are met

A local council has enquired whether free meals provided to nursery school staff should be treated as benefits in kind. The Directorate General for Taxes (DGT) has indicated that, provided the requirements of the Regulations are met, such provisions in company canteens may be exempt.

The question raised

Existence of benefits in kind for Personal Income Tax (IRPF) purposes.

The DGT's ruling

The delivery of products at reduced prices in company cafeterias may be exempt from Personal Income Tax (IRPF). For indirect methods, the amount must not exceed 11 euros per day. Furthermore, the requirements must be met that the service is provided on business days and does not coincide with days on which the employee accrues exempt meal allowances.

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