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V2189-20 29 June 2020 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · residencia eventual

Subsistence and accommodation allowances are non-taxable if they meet IRPF Regulation requirements and limits

A civil servant enquired whether monthly payments received for subsistence and accommodation expenses during a service assignment were subject to IRPF and when tax withholdings should be applied. The DGT ruled that these amounts are not taxable provided they comply with the quantitative and temporal limits set out in the Regulations.

The question raised

1.- Timing for the application of withholdings on allowances for accommodation expenses paid monthly in 2019 and 2020 intended for leasing and the tax period for the imputation of the withholdings applied.

The DGT's ruling

Allowances to compensate for subsistence and accommodation expenses are not subject to Personal Income Tax (IRPF) if they meet three requirements: they compensate for hospitality expenses, the individual does not remain in a municipality other than their habitual one for more than nine months, and they do not exceed the daily limits established in the RIRPF. Withholdings must only be applied if such limits are exceeded or if the planned displacement exceeds nine months. Income is imputed to the period in which it becomes due to the recipient.

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