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V2493-17 4 October 2017 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · rendimientos del trabajo

Allowances received for expenses must be taxed as employment income

A taxpayer inquired whether an allowance received during a training and selection phase for employment at the Bank of Spain is exempt from Personal Income Tax (IRPF). The Directorate General for Taxes (DGT) ruled that it is not exempt under either the per diem or the scholarship regime, and therefore must be taxed.

The question raised

Whether the income received as a stipend for expenses is exempt from Personal Income Tax or must be taxed as income from employment.

The DGT's ruling

The amounts intended to offset travel expenses do not benefit from the meal allowance exemption under the RIRPF as there is no prior employment or statutory relationship with the payer. Likewise, they are not considered tax-exempt scholarships under Article 7.j) of the LIRPF as they do not meet the requirements of said regulation. Therefore, these amounts are subject to taxation as income from employment.

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