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V4375-16 11 October 2016 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · rendimientos del trabajo

Maintenance and accommodation allowances may be exempt from income tax if conditions are met

An employee asks whether relocation allowances to China are exempt from income tax. The DGT explains that such payments may be tax-exempt if they meet the conditions set out in the Income Tax Regulation.

The question raised

Request for information regarding the IRPF tax exemption in connection with such travel abroad.

The DGT's ruling

Allowances for subsistence and accommodation expenses are not subject to Personal Income Tax (IRPF) if the employee travels away from their habitual place of work and their residence. To qualify for the exemption, they must compensate for hospitality expenses, not exceed the quantitative limits set by the Regulations, and the employee must not remain in a municipality other than their habitual one for more than nine months. Any amount that does not comply with these terms shall be subject to full taxation.

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