Assumptions that do not constitute income from work in kind

Regulations: Art. 42.2 Law Personal Income Tax

• Study expenses for updating, training or recycling of employed personnel

  Regulations: Art. 44 Regulation Personal Income Tax

  Included within this concept are studies arranged by Institutions, companies or employers financed directly or indirectly by them, although their effective provision is carried out by other persons or specialized entities, provided that in addition:

  • Their purpose is the updating, training or recycling of their personnel.
  • The studies are required by the development of the personnel's activities or the characteristics of the jobs.

  In these cases, the expenses for transportation, maintenance and stay that are exempt from tax will be governed by the general rules discussed in the following section.

  Since January 1, 2017, it is understood that the studies have been arranged and financed indirectly by the employer when they are financed by other companies or entities that market products for which it is necessary to have a adequate training by the worker, provided that the employer authorizes such participation.

• Expenses for premiums or fees for occupational accident or worker's civil liability insurance

  The premiums or contributions paid by the company under an insurance contract, which covers solely and exclusively the risk of a work accident or civil liability occurring to employees in the exercise of their work duties, are not considered remuneration in kind.

• Loans arranged prior to January 1, 1992

  Regulations: Additional Provision second Law Personal Income Tax

  Loans with an interest rate lower than the legal interest rate on money arranged prior to January 1, 1992 are not considered remuneration in kind, provided that the principal had been made available to the borrower prior to said date.