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V3195-23 11 December 2023 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · rentas en especie

Free bus transport on fixed routes is not taxed as a benefit in kind

An employee inquired whether the free bus service provided by their company to the workplace constitutes a benefit in kind. The DGT has determined that, as it is a service with fixed routes and stops, it is considered an exempt social service.

The question raised

Taking into account that the taxpayer is enrolled in the free transportation service provided by the new company, whether the provision of said service is considered income in kind.

The DGT's ruling

The free bus transportation of personnel to the workplace is not considered a benefit in kind if it is carried out in vehicles with more than nine seats and is organized through routes or lines with fixed pick-up and drop-off points. As it is not a door-to-door service, it is considered a social service and, therefore, a benefit in kind exempt from taxation pursuant to Article 42.3 of the Personal Income Tax Law (LIRPF).

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