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V3169-19 13 November 2019 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · retribución en especie

Railway transport discounts for employees classified as benefits in kind

A query was raised regarding whether railway transport discounts applied to Renfe employees via collective bargaining agreements constitute benefits in kind. The Directorate-General for Taxes (DGT) ruled that using transport at a price below the standard market rate constitutes income in kind.

The question raised

For the purposes of Personal Income Tax (IRPF), inquiry is made regarding the consideration of the aforementioned discounts as a benefit in kind.

The DGT's ruling

The use of transport services at a price below the normal market rate constitutes a benefit in kind. As this is the employer's regular activity, the valuation of said income shall be the difference between the price offered to the public (deducting ordinary or common discounts) and the amount paid by the employee. Ordinary discounts are considered to be those offered to similar groups or general promotions, or those that do not exceed 15 percent or 1,000 euros annually.

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