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Practical manual for Income Tax 2020.

Special labor relations of a dependent nature

In these cases, it is necessary to distinguish between;

• Living expenses, which follow the general rule set out above, and

• Travel and subsistence expenses, to which a special rule applies according to which, when travel and subsistence expenses are not specifically reimbursed by the companies to which they provide their services, taxpayers who obtain income from work derived from this type of employment relationship may reduce their gross income, to determine their net income, by the following amounts, provided that they justify the reality of their travel:

  1. For transportation expenses .

    When public transport is used, the amount of the expense must be justified by an invoice or equivalent document.

    In another case: The amount resulting from calculating 0.19 euros per kilometre travelled, plus any justified toll and parking costs.

  2. For living expenses .

    Movements in Spanish territory: 26.67 euros per day.

    Travel abroad: 48.08 euros per day.

Example:

Mr. DMM He was hired by a company in Zaragoza as a sales representative, establishing a special employment relationship of a dependent nature in accordance with Royal Decree 1438/1985, of August 1. Travel, accommodation and food expenses are your responsibility and will not be specifically reimbursed by the company. The area assigned to him for his work is located in the north of the province of Teruel, and he travels in his own vehicle.

Throughout 2020, he received a total of 27,400 euros for his services, having travelled a total of 20,000 kilometres over 110 days. The duly justified expenses arising from such travel are the following:

Parking fees = 96

Hotel stay expenses = 1,500

Living expenses in restaurants = 3,300

Determine the amount of gross income taxable by Mr. DMM in your personal income tax return for the 2020 financial year.

Solution:

Gross remuneration = 27,400

Non-computable income:

  • Transportation expenses (20,000 km x 0.19 euros) = 3,800
  • Parking fees = 96
  • Maintenance expenses (26.67 euros x 110 days) = 2,933.70
  • Living expenses: (*) --
  • Total = 6,829.70

Total taxable income (27,400.00 – 6,829.70) = 20,570.30

Note the example:

(*) Since the company does not specifically reimburse the expenses of the stay, no amount is deductible for this concept. (Back)