Calculation of travel days for the foreign employment tax exemption

The application of the exemption for income from employment derived from travel abroad often raises doubts regarding the calculation of the days required to meet legal requirements. A recent binding ruling from the Directorate General of Taxes (DGT) has clarified the treatment of travel days in this context.

What the DGT has ruled

The issue raised focused on whether the day of return to Spain, when arrival occurs before 12:00 hours, should be counted as a day of stay abroad for the purposes of the exemption regulated in Article 7 p) of the Personal Income Tax Law (LIRPF).

The DGT has ruled that income from employment received for work effectively performed abroad includes both the travel days to the destination country and the return days to Spain. This interpretation is based on the doctrine of the Supreme Court, which considers it coherent and reasonable to include arrival and departure days within the calculation of the exemption.

What this means for you

For workers undertaking international travel, this ruling has a direct impact on the calculation of the exemption for their income. The worker can include both the day they travel toward their destination and the day they return to Spanish territory in the calculation of days spent abroad.

This implies that the period of effective stay for the application of the LIRPF and the RIRPF regulations is broader than what a restrictive interpretation might suggest, allowing transit days to form part of the period that entitles one to the tax benefit.

What you should do

It is essential that taxpayers maintain precise documentation of their travels, including transport tickets and supporting documents that prove the departure and arrival dates. Since the application of the exemption depends on the correct accounting of these days, it is recommended to assess each particular situation to ensure that the calculation complies with current regulations and the cited jurisprudence.