Assumptions that do not constitute income from work in kind

Regulations: Art. 42.2 Law Income Tax

The following are not considered to be income in kind:

• 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 and financed directly or indirectly by them, even if their actual provision is carried out by other persons or specialized entities, provided that the following requirements are also met:

  • 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 travel, food and lodging expenses that are exempt from tax will be governed by the general rules discussed in the following section ( diets and travel expense allowances ).

  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.

  Clarifications:

  Any insurance policy taken out by the company on behalf of its employees that covers risks or contingencies outside of work activity and that also covers not only the employee but also, where applicable, the spouse and children, constitutes remuneration in kind.

  The insurance is required to cover only and exclusively the risk of occupational accidents or civil liability incurred by its workers in the performance of their work activities. The contract must cover the worker, understanding said term or expression - "worker" - as a person who provides paid services on behalf of another person and within the scope of organization and management of another person, physical or legal, called employer or businessman."

  Likewise, for the purposes of insurance coverage taken out to cover contingencies of disability or death arising from work accidents, it is necessary to point out that occupational disease is considered an occupational accident or a variety thereof, and as long as there is no express exclusion in the conventional legal relationship, the concept of occupational accident includes occupational disease, the only variation being that occupational disease is based on a legal presumption arising from a double list of activities and diseases (Judgments of TS of 11-25-92; 19-7-91; 25-9-91).

• 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.