Locomotion diets
Some of the expenses that a worker can pass on to the company for the reason or occasion of their work are: transportation expenses. Within transportation expenses we can find: mileage, toll expenses and/or parking expenses. On this occasion we are going to focus on the payment of mileage expenses.
Article 9.2 of the Personal Income Tax Regulation establishes the following general rules:
2. Allocations for transportation expenses. The amounts allocated by the company to compensate the transportation expenses of the employee or worker who travels outside the factory, workshop, office, or work center, to carry out their work in a different place, are exempt from taxation, under the following conditions and amounts:
a) When the employee or worker uses public transportation, the amount of the expense is justified by an invoice or equivalent document.
b) In another case, the amount resulting from computing 0.26 euros per kilometer traveled, provided that the reality of the trip is justified, plus the justified toll and parking expenses.
It should be noted that in order for it to be considered a worker's expense, it must first be there must have been a monetary disbursement by the worker as a direct consequence of their provision of services. It is not possible to deduct personal income tax for transportation for expenses that the worker has not borne.
He article 9 of the Personal Income Tax Regulations, indicates that the amount per mileage that will be paid to the worker will compensate: (i) the fuel used, (ii) maintenance and depreciation of the vehicle, and (iii) the expense of vehicle insurance.
Regarding toll and parking amounts, the total amount spent will be exempt.
Increase in the maximum amount
Since last July 17, 2023, the maximum amount of mileage allowances exempt from personal income tax has increased, going from €0.19/km to €0.26/km. This means that, from now on, all those companies that pay their collaborators up to said maximum will NOT have to pay taxes to the treasury.
Now, if the collective agreement (or employment contract) stipulates that the kilometer traveled will be paid at €0.30/km, you must bear in mind that the excess is taxed as work performance (Key A). Fiscally, the amount must be broken down into two:
- The first €0.26 would be exempt (Key L).
- The next €0.04 should be taxed (Key A).
Let's take an example. If a working person makes a trip with his or her private car to another province and travels a total of 320 kilometers; Two items with the following gross amounts should appear on that month's payroll.
- Exempt mileage: 83.2 euros gross.
- Subject mileage: 12.8 euros gross.
In case of verification by the Administration (Labor Inspection, General Treasury of Social Security, Labor Inspection, etc.), the company must demonstrate the reality of said payment, proving the day, place and reason for said displacement, and link it with their work activity.
Therefore, if the company does not pass this accreditation, the transportation expenses will have a salary nature since the Treasury will understand that the company has limited itself to paying a lump sum amount, recurring or not, and without any motivation, thus distorting its nature. and the purpose of the transportation expense.
For this reason, it is absolutely advisable to keep a control or record of the expenses paid to workers, because the Administration can request justification for the last four years, and it is difficult for companies that use mileage expenses a lot to remember why. A certain amount was paid to a certain worker 4 years ago.
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