Employees with airline ticket discounts will be taxed at market price

The provision of airline tickets, whether free of charge or with a discount applied, has direct tax implications for workers' Personal Income Tax (IRPF). The Dirección General de Tributos (DGT) has specified how this benefit must be valued when the company providing it has air transport as its habitual activity.

What the DGT has ruled

The administration establishes that these benefits constitute income in kind from employment. Since this is the company's own activity, the valuation of such remuneration cannot be lower than the price the company habitually offers to the public.

However, regulations allow for the deduction from the market price of those discounts considered ordinary or common. These include:

• Discounts applied to similar groups.
• General promotions.
• Discounts that do not exceed 15% of the value or 1,000 euros annually.

The DGT warns that the correct application of these valuation criteria is a matter of fact that the tax inspection may verify in each specific case.

What it means for you

If you are an employee receiving airline tickets as part of your remuneration package, you must take into account that the savings obtained have a tax repercussion. The value that will be included in your IRPF taxable base will be the difference between the retail price and the discount received, provided that the latter is not an ordinary discount.

For companies, this criterion implies an obligation of control. If the company offers its own services as remuneration, it must strictly apply the valuation rules of the price offered to the public to avoid discrepancies with the administration.

What should be done

It is necessary to analyze the company's benefits policy to determine whether the discounts applied to employees meet the definition of ordinary discounts. The correct distinction between a general promotional discount and a benefit in kind is fundamental to avoid adjustments in IRPF tax returns or in the company's settlements. It is recommended to assess each benefits scheme individually to ensure its compliance with current regulations.