Back to index
V3480-15 12 November 2015 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · rendimientos del trabajo

Medical expense subsidies covered by Social Security are taxed as employment income

A query is made as to whether the payment for a private medical operation performed by an employee, which was already covered by Social Security, is subject to Personal Income Tax (IRPF). The DGT responds that, as it is an expense already covered by the public system, the subsidy is not considered healthcare and must be taxed.

The question raised

Question posed: Whether the subsidy received by the employee will be subject to taxation under Personal Income Tax.

The DGT's ruling

Subsidies for illness expenses are not taxed if they are intended for the treatment or restoration of health and are not covered by the Health Service or Mutual Fund. If the subsidy covers expenses that were already covered by Social Security, it is not excluded from taxation and constitutes employment income subject to IRPF. Any social benefit whose purpose is to alleviate the economic situation of the recipient and not healthcare itself shall also be taxed.

Email
Contact