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V1949-19 25 July 2019 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · retribución en especie

Childcare expenses paid by employees may qualify for increased maternity tax deductions

A query was raised regarding whether childcare expenses covered via 'childcare vouchers' can be included in the calculation for the increased maternity tax deduction. The Directorate General for Taxes (DGT) ruled that if the voucher is treated as an exempt benefit in kind, it cannot be included; however, any portion of the expense paid directly by the employee from their own funds does qualify.

The question raised

Whether the portion of childcare expenses paid by the employee may be subject to the increase in the maternity deduction.

The DGT's ruling

If the company's payment via vouchers constitutes tax-exempt benefits in kind pursuant to Article 42.3.b) of the LIRPF, it does not entitle the recipient to the increase in the maternity deduction. However, the amount paid directly by the employee when the voucher does not cover the total expense may give rise to said deduction, provided that the requirements of Article 81 of the LIRPF are met.

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