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V3151-17 5 December 2017 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · dietas de manutención

Subsistence allowances for travel may be exempt from Income Tax if RIRPF requirements are met

A construction company has enquired whether subsistence allowances for its permanent employees are exempt from Income Tax (IRPF). The Directorate General for Tax (DGT) has ruled that travel allowances for work in a municipality other than the usual place of work or residence are exempt, provided they meet the amount, duration, and purpose requirements set out in Article 9.A.3 of the RIRPF.

The question raised

Whether, regarding permanent employees, the paid subsistence allowances are exempt from taxation under IRPF, through the application of the provisions of Article 9.A.3 of the RIRPF.

The DGT's ruling

For employees with permanent staff contracts, travel allowances for displacement to a municipality other than the habitual place of work and the residence are exempt from Personal Income Tax (IRPF) if they compensate for subsistence and accommodation expenses, do not exceed the quantitative limits set by the Regulations, and the worker does not remain in said municipality for more than nine months. In fixed-term contracts, amounts to compensate for travel from the residence to the workplace are fully taxable, unless the worker travels from their habitual workplace to other worksites. The regime for mobile or itinerant workplaces only applies when the workplace itself has mobility, not due to the nature of the activity.

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