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V3069-21 7 December 2021 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · gastos de manutención

Allowances for subsistence and travel during work-related displacements may be exempt from Personal Income Tax (IRPF)

A company has requested clarification on whether travel and subsistence expenses paid to employees for trips to other municipalities are tax-exempt. The Directorate General for Taxes (DGT) has ruled that these amounts are not taxable, provided they meet the requirements for displacement away from the habitual workplace and comply with the quantitative limits set by the IRPF Regulations.

The question raised

Whether the amounts paid to workers for locomotion and subsistence expenses are exempt from taxation.

The DGT's ruling

Allowances for subsistence and lodging expenses are not taxable if incurred in a municipality other than the habitual one and the residence, respecting the daily limits of the regulations and the nine-month time limit. For subsistence, the exempt amounts depend on whether there is an overnight stay and whether the travel is domestic or international. Locomotion expenses are exempt if public transport is used (justified amount) or through the calculation of 0.19 euros per kilometer plus justified tolls and parking. Any excess over these limits shall be taxed as employment income.

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