Work income by nature

Regulations: Art. 17.1 Law Income Tax

In particular, the following are included among the gross earnings from work:

1. Salaries and wages.

2. Unemployment benefits.

   These unemployment benefits received in the single payment modality are declared exempt in article 7 of the Personal Income Tax Law .

3. Remuneration in the form of representation expenses.

4. Diets and allowances for travel expenses, except for those for transportation and those considered normal for food and lodging in hospitality establishments, with the limits established by regulations, which are discussed below.

   See in this regard the allowances and allowances for travel expenses and normal maintenance and subsistence expenses of tax referred to in article 9 of the Personal Income Tax Regulations .

5. The contributions or contributions paid by the promoters of pension plans provided for in the consolidated text of the Law regulating pension plans and funds, approved by Royal Legislative Decree 1/2002, of November 29 ( BOE of December 13), or by the promoter companies provided for in Directive (EU) 2016/2341 of the European Parliament and of the Council of December 14, 2016, relating to the activities and supervision of funds of employment pensions.

   Precision: although article 17.1.e) of the Personal Income Tax Law refers to Directive 2003/41/EC of the European Parliament and of the Council, of June 3, 2003, it has been repealed with effect from January 13, 2019, by Directive (EU) 2016/2341, which also establishes that references to Directive 2003/41/EC will be understood to be made to it.

6. Contributions or contributions paid by employers to meet pension commitments under the terms set forth in the First Additional Provision of the consolidated text of the Law regulating pension plans and funds, approved by Royal Legislative Decree 1/2002, cited above, and in its implementing regulations, when they are attributed to the persons to whom the benefits are linked.

   This tax imputation will be voluntary in collective insurance contracts other than company social security plans, and the decision adopted with respect to the rest of the premiums paid must be maintained until the termination of the insurance contract.

   However tax imputation becomes in the following cases:

   • In risk insurance contracts (such as, for example, insurance covering the contingency of death or disability).

   • When the insurance contracts jointly cover the contingencies of retirement and death or disability, in the part of the premiums paid that corresponds to the capital at risk due to death or disability, provided that the amount of said part exceeds 50 euros per year.

     For these purposes, the difference between the capital insured for death or disability and the mathematical provision is considered to be risk capital.

   • In insurance contracts in which the fiscal imputation of premiums is voluntary, the imputation will be mandatory for the amount exceeding 100,000 euros per year per taxpayer and in respect of the same employer, except in collective insurance contracted as a result of collective dismissals carried out in accordance with the provisions of article 51 of the Workers' Statute.

     However, in collective insurance policies contracted before December 1, 2012, in which premiums of an expressly determined amount appear, and the annual amount of these exceeds this limit of 100,000 euros, a transitional regime is established which determines that in these cases the imputation of this excess will not be mandatory (See the twenty-sixth transitional provision of the Personal Income Tax Law ).