Earned income

Exempt work income in kind

The first Final Provision of Royal Decree-Law 35/2020, of December 22, on urgent measures to support the tourism, hospitality and commerce sectors and in tax matters (BOE of the 23rd) has modified article 42.3.a) of the Personal Income Tax Law to specify that the exemption of deliveries to employees of products at reduced prices that are made in company canteens or dining rooms or social stores (including indirect formulas for providing the service) whose amount does not exceed the amount determined by regulation, will apply regardless of whether the service is provided in the premises of the hospitality establishment or outside of it, after prior collection by the employee or by delivery to his or her workplace or to the place chosen by the employee to carry out his or her work on days when this is done remotely or through teleworking.

Reductions applicable to certain gross income

Transitional regime of reductions in benefits received in the form of capital derived from private social security systems.

In 2020, it is no longer possible to apply this transitional reduction regime to benefits received in the form of capital derived from pension plans, social welfare mutual funds and pension plans insured for contingencies that occurred in the 2011 or previous years.