Tax treatment of allowances for federated referees without an employment relationship

The Directorate General of Taxes (DGT) has issued a relevant ruling regarding the tax nature of amounts paid to federated referees as allowances. The central issue lies in determining whether these amounts can be considered exempt income from Personal Income Tax (IRPF) when no formal employment relationship exists between the referee and the sports federation.

What the DGT has ruled

The inquiry analyzes whether allowances for travel outside the municipality of residence can be classified as exempt income, provided that requirements of necessity and regulatory limits are met. The DGT has determined that the regime of exonerated allowances provided for in Article 9 of the Tax Regulations is reserved exclusively for employees with an employment relationship.

For referees who do not maintain an employment link with the federation, the amounts received will only maintain their exempt status if the sports federation directly provides the means of transport and accommodation. If the federation opts to reimburse expenses or pay amounts for free allocation without proving that they strictly compensate for the travel, such amounts are considered monetary income subject to IRPF taxation.

What this means for you

If you are a federated referee receiving allowances but do not have an employment contract, you must be particularly careful about how you receive compensation. The mere fact of receiving a sum of money to cover your travel expenses does not guarantee tax exemption. If the money is deposited into your account so that you can manage your own accommodation or transport expenses, the Tax Administration will treat it as additional income subject to tax, in accordance with Law 35/2006.

What should be done

It is fundamental to verify the compensation method used by the sports federation. To ensure that the amounts are not taxed, the ideal approach is for the entity to manage and pay for transport and accommodation services directly. In the event that reimbursement of expenses is used, it is imperative to have documentation proving that the amount strictly compensates for the travel performed, avoiding free allocation payments that could be classified as monetary income.