7,1,2,2. Rules of assessment

In general, income in kind will be valued at its normal market value. The amount paid on account will be added to this value, unless the amount has been passed on to the recipient.

However, the following income from work in kind will be valued in accordance with the valuation rules provided for in article 43 of the Tax Law:

1. Use of housing

   If the property used is owned by the payer, the valuation will be carried out for the amount resulting from applying 10% to the cadastral value.

   In the case of properties whose cadastral values have been revised or modified, or determined by means of a general collective valuation procedure, in accordance with cadastral regulations, and have come into force in the tax period of the fiscal year or within the period of the 10 previous tax periods, the valuation will be 5% of the cadastral value.

   If on the date of accrual of the Tax the properties do not have a cadastral value or this has not been notified to the owner, 50% of the highest of the following values will be taken as the imputation base: the one verified by the Administration for the purposes of other taxes or the price, consideration or value of the acquisition. In these cases, the percentage will be 5%.

   The resulting valuation may not exceed 10% of the remaining compensation for the work.

   If the property used is not owned by the payer, the remuneration in kind is determined by the cost to the payer of the property, including any taxes levied on the transaction, without this valuation being able to be lower than that which would have been applicable if the previous rule provided for properties owned by the payer had been applied (5 or 10% of the cadastral value of the property).

2. Use or delivery of motor vehicles 

   In the case of use or delivery of motor vehicles, the remuneration in kind will be valued according to the following rules:

   • In the event of delivery , the acquisition cost for the payer, including any taxes levied on the transaction.

   • In the case of use , 20% per year of the cost referred to in the previous paragraph. In the event that the vehicle is not owned by the payer, said 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 valuation of the latter will be carried out taking into account the valuation resulting from the previous use. For these purposes, the valuation of the use should be estimated at 20% annually, regardless of whether the availability of the car for private purposes has been total or partial.

   • In the case of vehicles belonging to companies whose usual activity is the transfer of use of motor vehicles, the valuation may not be lower than the price offered to the public for the service in question.

     In the case of transfer of use, the valuation may be reduced by 15, 20 or 30%, depending on the case, when the vehicles are considered energy efficient.

3. Other cases of remuneration in kind

   • Loans with interest rates lower than the legal rate of money

     The difference between the interest paid and the legal interest rate in force during the period (3% in fiscal year 2022) will be considered income in kind.

     However, loans with an interest rate lower than the legal rate of money agreed before January 1, 1992 and whose principal was made available to the borrower also before that date will not be considered as remuneration in kind (DA 2 Law).

   • Benefits for maintenance, lodging, travel and similar.

     Without prejudice to allowances and travel expenses exempt from taxation, benefits for food, lodging, travel and similar shall be valued at the cost to the payer, including taxes levied on the operation.

   • Premiums or fees paid under an insurance contract or similar

     They will be valued at the cost to the payer, including any taxes levied on the transaction.

     However, premiums or contributions paid to insurance companies for the coverage of illness of the employee, spouse and descendants under the conditions established by law will not be considered remuneration in kind.

   • Amounts intended to cover study and maintenance expenses

     Amounts intended to cover the costs of studies and maintenance of the taxpayer or other persons related to him/her by kinship ties, including those related by marriage, up to the fourth degree inclusive: They will be valued at the cost to the payer, including any taxes levied on the transaction.

     However, amounts intended for the updating, training or retraining of employed personnel when required by the development of their activities or the characteristics of their jobs will not be considered remuneration in kind.

   • Pension plans and pension commitments

     Contributions paid by pension plan promoters or by promoting companies as provided for in Directive 2003/41/EC of the European Parliament and of the Council of 3 June 2003, as well as amounts paid by employers to meet pension commitments under the terms set out in the First Additional Provision of Royal Legislative Decree 1/2002 of 29 November, approving the Law on the Regulation of Pension Plans and Funds, shall be included as income from work in kind for their amount.

     Also, by their amount, the amounts paid by employers to dependency insurance.

4. Cautionary valuation rule: Price offered to the public

   When the performance of work in kind is satisfied by companies whose usual activity is the performance of the activities that give rise to it, the valuation may not 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 will be considered to be that provided for in article 60 of the consolidated text of the General Law for the Defense of Consumers and Users and other complementary laws, approved by Royal Legislative Decree 1/2007, of November 16, deducting ordinary or common discounts.

   The following will be considered ordinary or common:

   • Discounts offered to other groups with similar characteristics to the company's workers.

   • Promotional discounts that are general in nature and in force at the time of payment of the remuneration in kind.

   • Any other than the above provided that they do not exceed 15% or 1,000 euros per year.

     In the case of transfer of the use of vehicles considered energy efficient, the resulting valuation may be reduced by up to 30%, under the terms and conditions determined by regulation.