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V3353-15 30 October 2015 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · rendimientos del trabajo en especie

Daycare tax exemption in kind not applicable to worker cooperative members

A worker cooperative sought clarification on whether paying for members' children's daycare could be treated as an exempt benefit in kind. The Directorate General for Taxes (DGT) ruled that this is not applicable because the relationship between the member and the cooperative is corporate rather than an employment relationship.

The question raised

Consideration of nursery school payments as exempt in-kind employment income, pursuant to the provisions of Article 42.3.b) of Law 35/2006.

The DGT's ruling

The exemption under Article 42.3.b) of the Personal Income Tax Law for early childhood education services requires the existence of an employment relationship characterized by subordination and alterity. Since the relationship between the working members and the cooperative is of a corporate nature, the requirements to apply said exemption are not met.

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