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V3295-17 27 December 2017 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · prestaciones por fallecimiento

Repatriation costs paid by a company may be exempt from Personal Income Tax

A worker dies in a road accident while on holiday in Morocco, and their company pays for the repatriation costs. A query is raised regarding whether this payment is exempt from Personal Income Tax (IRPF).

The question raised

Whether the application of the exemption provided for in Article 7.r) of the LIRPF is possible in this case.

The DGT's ruling

Death benefits are earned income subject to taxation. However, Article 7.r) of the LIRPF exempts benefits received for burial or funeral expenses up to the limit of the expenses incurred. The payment of corpse repatriation expenses is understood as amounts paid for burial or funeral expenses, and therefore may be considered exempt.

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