7,1,2,2. Rules of assessment
In general, income in kind will be valued at their normal market value. The payment on account will be added to this value, unless the amount has been passed on to the recipient.
However, the following earned income in kind will be valued in accordance with the valuation rules provided for in Article 43 of the Tax Act:
Use of property
Use or delivery of motor vehicles
Other cases of remuneration in kind
Use of a home (article 43.1.1.a of the Act)
If the property used is the property of the payer, the valuation will be carried out for the amount resulting from applying 10% to the cadastral value. 100
In the case of properties whose land registry values have been reviewed or modified, or determined by a general collective valuation procedure, in accordance with the land registry regulations, and which have come into force in the tax period of the financial year or within the 10 previous tax periods, the valuation will be 5% of the cadastral value. 100
If at the accrual date of the Tax the properties lacked the cadastral value or the latter had not been notified to the holder, they will be taken as the basis for their imputation on 50 per 100 of the one for which they must be counted for the purposes of the Wealth Tax. In these cases, the percentage will be 5%. 100
The resulting valuation may not exceed 10 per cent of the remaining contract benefits. 100
If the property used is not the property of the payer, the remuneration in kind is determined by the cost for the payer of the property, including the taxes that the operation charges, without this valuation being lower than that which would have been due to the previous rule established for the residences owned by the payer (5 or 10 per cent of the property's cadastral value). 100
Use or delivery of motor vehicles (article 43.1.1.b and f of the Act)
In the case of use or delivery of motor vehicles, remuneration in kind shall be valued in accordance with the following rules:
In the event of delivery, the cost of acquisition for the payer, including the taxes that are charged on the transaction.
In the event of use, 20 per cent of the cost referred to in the previous paragraph. 100 If the vehicle is not the payer's property, this percentage will be applied to the market value that would correspond to the vehicle if it were new.
In the event of use and subsequent delivery, the latter's valuation will be carried out taking into account the resulting valuation of the use for these purposes, the valuation of use must be estimated at 20 per 100 per year, regardless of whether the availability of the car for private purposes has been total or partial.
In the case of vehicles belonging to companies that have the assignment of use of motor vehicles as their usual activity, the valuation cannot be lower than the price offered to the public of the service in question.
The valuation, in the event of assignment of use, may be reduced by 15, 20 or 30%, depending on the case, in the case of vehicles considered energy-efficient.
Other cases of remuneration in kind (art. 43 Act)
- Loans with interest rates lower than the legal rate of the money
The difference between the interest paid and the legal interest of the money in force in the period (3% in 2019) will be considered income in kind.
However, loans with interest rates lower than the legal interest rate of the money arranged before January 1, 1992 will not be considered remuneration in kind and the principal of which would have been made available to the borrower before that date (D.A. 2 Act).
- Benefits for maintenance, accommodation, travel and similar
Without prejudice to travel allowances and travel expenses , except for tax payers, benefits for accommodation, travel and similar will be valued at the cost of the tax, including the taxes that are charged on the transaction.
- Premiums or payments paid under the insurance contract or similar
They will be valued at the cost for the payer, including the taxes that are charged on the operation.
However, premiums or payments paid to insurance companies for the coverage of the worker's own illness, spouse and descendants under the legally established conditions will not be considered as remuneration in kind.
- Amounts intended to cover study and maintenance expenses
The amounts intended to cover the expenses of studies and maintenance of the taxpayer or other persons linked thereto by relationship, including those related to the taxpayer, up to the fourth degree, inclusive: They will be valued at the cost for the payer, including the taxes that are charged on the operation.
However, amounts intended for the updating, training or recycling of the staff employed will not be considered remuneration in kind, when they are required to carry out their activities or the characteristics of the jobs.
- Pension plans and pension commitments
Contributions paid by pension plan developers, or by promoter companies provided for in Directive 2003/41/EC of Parliament European and Council, of 3 June 2003, as well as the amounts paid by entrepreneurs to meet pension commitments in the terms set out in the first Additional Provision of Royal Legislative Decree 1/2002 of 29 November, approving the Act of Regulation of Pension Plans and Funds, they will be included as earned income in kind for their amount.
Similarly, for their amount, the amounts paid by employers to dependency insurance.
Precautionary valuation rule: Price offered to the public (Article 48 of the Act)
When the return on work in kind is paid by companies that have the activities that give rise to it as their normal activity, the valuation cannot be lower than the price offered to the public of the good, right or service in question.
For these purposes, the price offered to the public shall be considered as that provided for in article 13 of Law 26/1984 of 19 July, General for the Defense of Consumers and Users, deducting ordinary or common discounts.
They will be considered ordinary or common:
- Discounts offered to other groups of similar characteristics to the company's employees.
- Promotional discounts that are general in nature and are in force at the time of paying the remuneration in kind.
- Any other than the above, provided that they do not exceed 15% of 100 euros per year. 1.000