General rule of valuation and entry on account
General valuation rule
Regulations: Art. 43.1 Law Personal Income Tax
In general, remuneration in kind must be valued at its normal market value. However, in the valuation of certain remuneration for work in kind, the special valuation rules discussed below must be applied.
Deposit on account
Regulations: Articles 43.2 Law Personal Income Tax and 102 Regulations
To the amount of the valuation of the remuneration in kind for the work, the payment on account that corresponds to the payer of said remuneration will be added, regardless of whether said payment on account has actually been made. The amount of the payment on account will be the result of applying the corresponding withholding percentage on the valuation of the remuneration in kind.
Notwithstanding the above, it will not be necessary to add the payment on account in the following cases:
- When there is no obligation to make payments on account of remuneration in kind for work, as is the case of contributions paid by the promoters of pension plans, corporate social security plans and social security mutual societies that reduce the tax base.
- When the payment on account has been passed on to the worker.
In short, in remuneration in kind, the full performance of the work is obtained by adding the valuation of the remuneration in kind plus the amount of the payment on account not passed on to the worker. So that:
Full return = Valuation + Payment on account not passed on