Free or discounted airline tickets are considered benefits in kind

The Directorate General of Taxes (DGT) has issued a relevant ruling regarding the tax nature of benefits that airlines grant to their employees in the form of airline tickets. This measure directly affects the Personal Income Tax (IRPF) taxable base of workers in the sector.

What the DGT has ruled

The binding ruling determines that the provision of airline tickets by an airline to its workers constitutes income in kind from employment. The key point lies in the methodology for its tax valuation.

According to the DGT, the valuation must be carried out using the price offered to the public for the service as a base, but applying a deduction for ordinary or common discounts. Common discounts are considered to be those that meet any of these conditions:

• Those offered to similar groups.
• General promotional discounts.
• Those that do not exceed 15 percent or 1,000 euros annually.

This criterion is based on IRPF regulations (Law 35/2006 and the IRPF Regulation RD 439/2007).

What it means for you

If you are an airline worker and receive free or discounted tickets, these benefits are not exempt income, but rather form part of your benefits in kind. This implies that they must be included in your IRPF taxable base.

For companies in the sector, this criterion establishes a clear valuation obligation. It cannot be considered as zero value if the ticket is free, nor can an arbitrary discount be applied. The company must apply the rule of common discounts to determine the amount that the employee must declare as employment income.

What should be done

It is necessary for airline workers to verify how these benefits are being integrated into their payslips and tax returns. For their part, companies must ensure that their valuation systems for benefits in kind comply with the limits for common discounts established by the administration to avoid tax contingencies.

Given that the application of these concepts depends on the nature of the discount applied, it is fundamental to assess each particular situation to ensure compliance with current regulations.