The amount of allowances and allowances for locomotion expenses that are exempt in personal income tax is revised upwards
July 17 () –
The Ministry of Finance and Public Function has approved two orders by which the compensation of expenses for mileage is updated for those who use a vehicle to carry out their work, which will reach 0.26 cents per kilometer travelled.
The compensation covers the fuel and the expenses related to the wear and tear caused to the vehicle and its possible breakdowns. Also included in this protection, although proportionally, are insurance and taxes related to the vehicle.
One of the orders published this Monday in the Official State Gazette (BOE), contemplates the compensation for public employees who must use their own vehicle to work, while another order includes the exemptions that taxpayers can enjoy in the Tax Personal Income Tax (IRPF) for the locomotion expenses they face in their daily performance using a car or any other vehicle.
Until now, this compensation or exemption had an amount of 0.19 euros per kilometer, an amount established in 2005.
The ways to access the benefit are very different for each group that can enjoy it. In the case of public employees, the 0.26 euros per kilometer will be paid after presenting the corresponding fuel bill and a statement justifying the trip. Subsequently, and after checking the documentation, a deposit will be made in their checking account.
For the group of workers who pay personal income tax who use the vehicle to work, the exemptions will be applied, allowing the amount resulting from multiplying 0.26 euros by the kilometers travelled, to be excluded from the tax return.
For this procedure it will be necessary to have a document that justifies the displacement, and in which the toll and parking costs may be included. as explained by the Department headed by María Jesús Montero.
The update to 0.26 cents was pending for various reasons. One of them is that the figure had not been updated since 2005, the year in which the 0.19 euros for both the compensation and the personal income tax exemption were introduced. Added to this are other determining factors on the final price of raw materials, such as the Russian invasion of Ukraine, which caused a historic rise in energy prices.
The consequences of the war tension in Ukraine have meant that, currently, the prices of gasoline or diesel are almost double what they were in 2005, when the last update was carried out.
A REFORM PLANNED AND AGREED WITH THE TRADE UNIONS
In this sense, an express authorization was included in Royal Decree-Law 20/2022, of December 27, on response measures to the economic and social consequences of the war in Ukraine and support for the reconstruction of the island of La Palma and other situations of vulnerability so that the Minister of Finance and Public Function could address this increase from 0.19 to 0.26 euros through ministerial orders.
This issue was also included in the ‘Framework Agreement for a 21st Century Administration, agreed with the unions of the CCOO and UGT Public Service area within the scope of the General Negotiation Table of the General State Administration. In said agreement, the ninth clause establishes the “update of the amounts” of these travel expenses to carry out the provision of services.