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V3354-15 2 November 2015 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · rendimientos del trabajo

Exemption for work performed abroad does not apply to European Parliament MEP allowances

A Member of the European Parliament has requested clarification on whether their parliamentary allowances qualify for the exemption for work performed abroad and how to avoid double taxation. The Directorate-General for Tax (DGT) has ruled that this exemption is not applicable to such payments and that double taxation is addressed through the deduction provided for by law.

The question raised

Question posed: Whether, regarding the amounts paid to her by reason of her position as a Member of the European Parliament, the exemption provided for in letter p) of Article 7 of the Personal Income Tax Law is applicable and the method to avoid double taxation.

The DGT's ruling

The exemption under Article 7(p) of the LIRPF is not applicable to the amounts paid by reason of the position of a Spanish Member of the European Parliament, as these are classified as income from employment under Article 17.2(b) of the LIRPF. Regarding double taxation with the Union tax, the community tax is considered to be of an identical or analogous nature to the IRPF, therefore the international double taxation deduction under Article 80 of the LIRPF may be applied.

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