New tax measures for the extension of the application of certain reduced VAT rates and the revision of the amount of daily per diems and mileage expenses
As a suggestion for light reading for this August period, generally markedly holiday-like, we are publishing this information alert to deal with two recently approved legislative novelties. We refer to the Royal Decree-Law of 28 June (RD 5/2023), and to Order HFP/792/2023 of 12 July ("BOE" no. 169 of 17 July 2023).
The first of these rules, which contains relevant changes in the commercial field, also in the tax field adopts tax measures related to the purchase of electric or plug-in hybrid vehicles and charging stations, while extending the application of certain reduced VAT rates. The second measure increases the amount of allowances and travel allowances in personal income tax to compensate (insufficiently) for the effects of inflation.
Among the tax measures included in Royal Decree-Law 5/2023 that stand out for their interest are the following:
- Value Added Tax.
Extension of the reduction in Value Added Tax (VAT) rates on deliveries, imports and intra-Community acquisitions of certain foodstuffs (art. 171 RD-ley 5/2023).
- Personal Income Tax.
Deduction for the purchase of electric or plug-in hybrid vehicles in Personal Income Tax (art. 189 RD-law 5/2023).
Deduction for the installation of battery recharging systems (art. 189 RD-law 5/2023).
- Corporate income tax
Accelerated depreciation of recharging infrastructures for electric or plug-in hybrid vehicles (art. 190 RD-law 5/2023).
- Tax proceedings
Novelties in the regulation of contentious-administrative proceedings (art. 224 RD-Law 5/2023).
For its part, Order HFP/792/2023 includes the following measure:
- Personal income tax
Increase in the amount exempt from personal income tax on allowances and allowances for travel expenses.
General rule. The Personal Income Tax Act establishes a general rule to exempt from taxation the amounts paid by the employer to the worker or employee to compensate for travel expenses. For this purpose, the following requirements must be met in the case of the use of private means:
The worker must travel by private means outside the factory, workshop or office to carry out his work at a different location. This does not include travel from home to the place of work and vice versa.
Justification for the journey must always be provided.
The amount paid by the employer must be within the limits set by the regulations.
Special rule. For taxpayers who obtain income from work derived from special employment relationships of a dependent nature, the deductible amount has also been raised from €0.19 to €0.26 per kilometre travelled, plus the justified toll and parking expenses.
Access to the complete Information Note
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