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V2112-17 10 August 2017 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · rendimientos del trabajo

Meeting attendance allowances may be taxed as employment income if not substantiated as travel expenses

A member of a School Council enquired whether allowances for attendance and travel expenses were exempt from Personal Income Tax (IRPF). The Directorate General for Tax (DGT) clarifies that if the payer reimburses expenses without proving they strictly compensate for the travel necessary for the role, the amounts are considered employment income subject to tax.

The question raised

Whether the aforementioned amounts for attendance and travel expenses are exempt from taxation for the purposes of Personal Income Tax.

The DGT's ruling

Amounts for attendance constitute employment income if the requirements for expenses incurred on behalf of third parties are not met. If the Council directly provides transport or accommodation, there is no income. If the Council reimburses expenses without proving that they strictly compensate for the travel necessary for the functions, or pays amounts for the free choice of means, it is considered monetary income subject to withholding.

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