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V3629-20 23 December 2020 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · rendimientos del trabajo

Allowances for project-based workers are taxable if commuting from home to the workplace

The inquiry asks whether travel, subsistence, and accommodation allowances for workers on project-based contracts are exempt from Personal Income Tax (IRPF). The Directorate General for Taxes (DGT) rules that if the worker travels from their home to the workplace where the project is located, the amounts are fully taxable.

The question raised

Whether allowances and allocations for travel expenses, and normal expenses for meals and accommodation, would be exempt from taxation when accrued by workers under fixed-term work or service contracts.

The DGT's ruling

Meal and travel allowances are only exempt if the worker travels from their habitual place of work to a different location. In fixed-term work contracts, if the destination is the center where the work is located, the amounts are taxable as they constitute travel from the residence to the place of work. However, if the worker travels from the work site to other locations, the exemptions under the RIRPF may apply provided the requirements are met.

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