Payment of professional association fees by the company is considered benefits in kind

The Dirección General de Tributos (DGT) has issued a relevant ruling regarding the tax nature of professional association fees when they are paid by the company on behalf of the employee. This scenario raises doubts about whether this amount must be included in the employee's taxable base and under what conditions it can be deducted.

What the DGT has ruled

The binding ruling determines that the payment of professional association fees by the employer constitutes a benefit in kind from employment. As it is an indirect economic perception, the amount must be included in the worker's income.

However, the regulations allow for the deduction of these amounts from gross employment income provided that specific requirements are met:

• Membership must be mandatory for the performance of job functions.
• The expense must correspond to the essential purposes of the professional institution.
• The deduction is limited to a maximum of 500 euros per year.

What it means for you

If you are an employee receiving this benefit, you must include the value of the fee as a benefit in kind in your income tax return. However, if membership is essential for your professional activity, you will be able to apply the corresponding deduction up to the established legal limit.

For companies, this ruling implies the obligation to consider such payment as a benefit in kind, which entails managing the corresponding withholdings in the employee's payroll.

What should be done

It is necessary to verify whether membership is a legal or statutory requirement for the exercise of the employee's profession. If this is the case, it must be ensured that the accounting records and payroll management correctly reflect this benefit in kind and respect the deduction limit of 500 euros per year. Each particular situation must be analyzed to determine the correct application of the current regulations.