As of 18 July 2023, a new regulation, Order HFP/792/2023 issued on 12 July, has been implemented. This order brings with it a revision in the rates and allowances for travel expenses in the Personal Income Tax (IRPF).
On travel expenses
The main section of this regulation, the sole article, focuses on travel expenses. According to Article 9.A.2(b) of the Personal Income Tax Regulations, an amount calculated by multiplying 0.26 euros by the number of kilometres travelled will be excluded. This is valid as long as it proves the journey was real. In addition, toll and parking costs will also be excluded if evidence of them is provided.
Regarding travel expenses referred to in Article 9.B.1(a) of the same regulation, the same calculation formula applies.
You can check the complete details in the official document here.
This new order aims to update the IRPF exemption amount paid to employees per kilometre travelled when using their vehicles for business trips. This change represents an increase of €0.07/km, from €0.19/km to €0.26/km. This amount has not changed since 2005.
There are certain requirements to qualify for this exemption:
- It applies only to employees who receive employment income.
- It is granted for travel outside the municipality where the workplace is located.
- The travel must be part of the work activities.
It is important to note that employment agreements may provide for a different amount than that stated in this order. In general, these amounts are usually higher. However, the amount stated in the order is the amount that will be exempt from personal income tax, and any amount above this will be considered additional income for the employee.
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