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V3448-20 27 November 2020 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · retribución en especie

Company payment of trade union fees is taxable income, not an exempt benefit in kind

A worker inquired whether the company's payment of their trade union fees through flexible remuneration constitutes exempt employment income. The Directorate General for Taxes (DGT) ruled that, whether as a payment mediation or as a benefit in kind, the amount must be treated as employment income and is not considered exempt.

The question raised

Whether such remuneration would be valid and whether it would be exempt employment income.

The DGT's ruling

If the company pays the union fee by mandate of the employee, it constitutes a mediation of payment of monetary earnings. If the obligation to provide the service is agreed upon in a collective agreement or contract, it constitutes a benefit in kind. In both cases, the earnings are not exempt, although union fees may be a deductible expense for the calculation of net earnings.

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