BASQUE COUNTRY AND NAVARRE: Learn about exempt transportation allowances
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We remind you of the tax treatment in Income Tax of allowances for commuting expenses.
If your company pays amounts to its employees to compensate them for travel expenses that they pay out of pocket to commute to work outside the usual factory, workshop, office, or workplace, those amounts are not taxed in Income Tax under the following requirements and maximum amounts.
If the employee uses public transportation
The amount justified by an invoice or equivalent document is not taxed.
And if the transportation is private
The amounts paid by your company for:
- Toll and parking expenses.
- The kilometers traveled, with a maximum of 0.29 euros per kilometer, in the Basque Country; 0.36 euros per kilometer, in Navarre.
For this, it is required that the worker justify both toll and parking expenses and the reality of the trip.
Our advisors will resolve any doubts you may have regarding the taxation of transportation allowances for your employees.
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