Assumptions that do not constitute income from work in kind

Regulations: Art. 42.2 Law Income Tax

• Study expenses for the updating, training or retraining of employed personnel

  Regulations: Art. 44 Regulation Income Tax

  This concept includes studies arranged by institutions, companies or employers financed directly or indirectly by them, even if their actual provision is carried out by other persons or specialized entities, provided that:

  • They are aimed at updating, training or retraining their staff.
  • The studies are required by the development of the staff's activities or the characteristics of the jobs.

  In these cases, the expenses of travel, food and lodging that are exempt from taxation will be governed by the general rules discussed in the following section.

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

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

  Premiums or contributions paid by the company under an insurance contract, which covers solely and exclusively the risk of occupational accidents or civil liability incurred by employees in the performance of their work duties, are not considered to be remuneration in kind.

• Loans arranged prior to January 1, 1992

  Regulations: Second Additional Provision Law IRPF

  Loans with an interest rate lower than the legal rate of money agreed upon before 1 January 1992 are not considered remuneration in kind, provided that the principal was made available to the borrower prior to that date.