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V3109-19 7 November 2019 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · retribución en especie

Nursery vouchers are exempt benefits in kind if they meet Article 42.3.b) IRPF requirements

A query was raised regarding whether a nursery voucher is exempt from taxation even if the remuneration matches the minimum threshold of the agreement. The DGT ruled that it shall be an exempt benefit in kind provided it meets the legal requirements for early childhood education services.

The question raised

Whether said benefit would be exempt upon meeting the requirements established in Article 42.3 of the Tax Law, notwithstanding the fact that the entirety of its remuneration coincides with the minimum set in the collective agreement.

The DGT's ruling

Amounts paid by the company to third parties for early childhood education services for employees' children constitute benefits in kind if they are agreed upon in the contract or collective agreement. For these benefits to be exempt, they must meet the requirements of Article 42.3.b) of the Personal Income Tax Law (LIRPF). Consequently, the nursery voucher shall be an exempt benefit in kind if it complies with said regulations.

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