Valuation of renting vehicles: the 20% market value criterion

The valuation of benefits-in-kind derived from the use of vehicles under the renting modality has raised doubts as to whether the amount to be taxed should coincide with the actual cost incurred by the company for the contract. The Dirección General de Tributos (DGT) has clarified the applicable procedure for this case.

What the DGT has ruled

The inquiry addresses whether it is possible to value the benefit-in-kind based on the actual cost incurred by the payer for the use of a renting vehicle. The DGT's criterion determines that, for vehicles that are not owned by the payer, the valuation must be carried out by applying 20% annually of the market value that would correspond to the vehicle if it were new.

This market value must include expenses and taxes, and is determined according to the value existing at the time the renting contract is entered into. It is important to highlight that this benefit-in-kind includes insurance, taxes, and maintenance, but excludes fuel expenses. Likewise, the regulations allow for a reduction of up to 30% in the valuation if the vehicle is energy-efficient, complying with the established emission limits and values.

What it means for you

This criterion has a direct impact on both the company and the employee:

• For the company: It must strictly apply the 20% market value rule for renting vehicles, without the possibility of using the actual cost of the contract for the valuation of the benefit-in-kind.
• For the employee: If they have availability for the private use of the vehicle, they must be taxed on 20% of its market value, regardless of what the company pays monthly for the renting.

What should be done

It is necessary to verify that the calculation of the benefit-in-kind on the payslip complies with the IRPF regulations and the market value of the vehicle at the time the contract is signed. It should be checked whether the vehicle meets the energy efficiency requirements to apply the corresponding 30% reduction and ensure that fuel costs are managed separately so as not to inflate the valuation.