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V2835-20 22 September 2020 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · rendimientos del trabajo

Subsidies for purchasing glasses may be exempt from Income Tax if intended for health restoration

A query was raised regarding whether financial aid provided under a collective agreement for the purchase of glasses is subject to Personal Income Tax (IRPF). The Directorate General for Taxes (DGT) ruled that if such aid is intended to cover health expenses not covered by the Health Service and aims to restore health, it is not taxable.

The question raised

Tax treatment of said aid in the Personal Income Tax of the recipients.

The DGT's ruling

Financial aid for medical expenses not covered by the Health Service or Mutual Insurance, intended for treatment or the restoration of health, is not considered income subject to Tax. Any other social benefit aimed at alleviating the economic situation of the recipient constitutes earned income subject to taxation. Aid for the purchase of eyeglasses is excluded from taxation if it fulfills the requirement of being intended for the restoration of health and covers expenses not covered by the Health Service.

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