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Practical manual for Income Tax 2023.

e) Amounts paid by the company for the collective transportation of its employees between their place of residence and the workplace

Regulations: Art. 46 bis Regulation IRPF

Amounts paid to entities responsible for providing the public collective passenger transport service to facilitate the travel of employees between their place of residence and the workplace are exempt, with a limit of 1,500 euros per year for each worker.

The delivery by the company to its employees of the "transport pass" (a personal and non-transferable transport ticket, which allows an unlimited number of trips within its spatial scope of validity -transport zones- and temporal -annual or monthly- in the collective public transport services arranged by the corresponding Transport Consortium), provided that the spatial scope of validity of the same takes into account the locations corresponding to the residence and the workplace of the employee and with the limit of 1,500 euros per year established by article 46 bis of the Regulation of IRPF , will be covered by this exemption. On the contrary, when the company gives the worker cash amounts so that he or she can acquire (or reimburse him or her for the expense incurred in the purchase) the transport tickets, it is considered monetary compensation, fully subject to tax and its withholding system.

Indirect formulas

formulas for the payment of amounts to the entities in charge of providing the aforementioned public service will also be considered, such as the delivery to workers of or any other electronic means of payment that meets the requirements (Art 46 bis Regulations the Income Tax):

  1. That they may be used exclusively as consideration for the acquisition of transport tickets that allow the use of the public collective passenger transport service.

  2. The monthly amount that can be paid with these cannot exceed 136.36 euros per month per worker, with a limit of 1,500 euros per year.

  3. They must be numbered, issued in a nominative manner and include the issuing company.

  4. That they are non-transferable.

  5. That the refund of the amount cannot be obtained, either from the company or from a third party.

  6. The company that issues cards or electronic means of payment must keep and maintain a record of those issued to each of its employees, stating the document number and the annual amount made available to the employee.

In the event of delivery of cards or electronic means of payment that do not meet the requirements indicated above, there will be compensation in kind for the total amounts made available to the worker. However, in the event of non-compliance with the limit indicated in number 2 above, there will only be compensation in kind for the excess.