Per Diems and Subsistence Expenses: Exempt Limits and Deductibility

What per diems are

Per diems are the amounts the company pays the worker to compensate subsistence and accommodation expenses when travelling for work to a municipality other than that of their usual workplace.

IRPF-exempt limits

Within certain limits, per diems are exempt from IRPF and do not pay contributions. If exceeded, the excess is taxed as employment income:

• Subsistence without overnight stay: lower exempt limit (national / abroad).
• Subsistence with overnight stay: higher exempt limit.
• Accommodation expenses: exempt with supporting document (hotel invoice).
• Travel: mileage exempt per km or public transport with supporting document.

For the per diem to be exempt, the trip must be justified: day, place and work reason.

How to justify per diems

1. Prove the trip (reason, date and destination).
2. Keep the supporting documents for accommodation and transport.
3. Reflect them correctly on the payslip.

Difference from the company's deductible expenses

Exempt per diems are one thing; deductible expenses in Corporate Tax or the business's IRPF are another. An expense is deductible if it is justified, recorded and linked to the activity.

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Conclusion

Per diems are exempt within limits and provided they are justified. Controlling trips and keeping supporting documents avoids problems in an inspection.