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V2799-23 16 October 2023 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · retribución en especie

Use of a company vehicle for commuting constitutes a benefit in kind

An employee uses a company vehicle to travel between home and work based on a judicially recognised right. The DGT has ruled that this use constitutes a benefit in kind because such commutes are considered part of the individual's private sphere.

The question raised

1. - Whether the use of the vehicle under inquiry for travel to the employee's residence, which is not stipulated in their contract or collective agreement, but where the right to such use has been established by judicial sentence, is considered for tax purposes a benefit in kind subject to Personal Income Tax (IRPF).

The DGT's ruling

The free use of a company vehicle for travel between the residence and the workplace constitutes a benefit in kind. The value of this remuneration is 20 percent per annum of the acquisition cost for the payer, including taxes. This valuation includes maintenance, insurance, and tax expenses, but excludes fuel, which would constitute independent remuneration. The valuation criterion must be based on the availability of the vehicle for private purposes and not on mileage or hours of use.

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