You can define the rent or salary in-kind, such as the use, consumption, or procurement of goods, rights or services free or at a price lower than the price of market for particular purposes, although they do not pose a real expense for those who grant it. In more simple words, would be delivered to the employee by the company of a service or a good without charging you for it. Within this concept we can include products from the company free, or reduced price, placed at the disposal of the workers.

It would be the case, for example, of a company that puts at the disposal of the worker in a car (company cars for personal use of the worker), participation in training activities, the transfer of a dwelling for the private use of the employee and, even, the baskets of christmas, the payment of a health insurance to their workers, the implementation of a dining room service in their facilities, the granting of a loan at an interest rate lower than the statutory rate of money, etc…

Also keep in mind that are not considered income or wages in-kind:


  1. the amounts for the update, training or retraining of personnel employee, when they come required for the development of their activities or the characteristics of the jobs, even when provided by a third party specialized in it.
  2. the

  3. premiums or contributions paid by the company under the contract of insurance of accidents at work or of the civil liability of the worker.
  4. the

  5. aid to promote the use of new technologies.
  6. the

  7. deliveries to employees of products at discounted prices that are made in bars or dining rooms of a company or co-operative stores of a social nature, always occur on business days for the worker, and that day is not accrued travel allowance.
  8. the

  9. The fees or premiums for insurance of the worker, his spouse and descendants, provided that the premiums of each one does not exceed 500 euros per year. The excess is considered taxable.

“income or salary in kind is delivered to the employee by the company of a service or a good without charging you for it”

the remuneration in kind represent, therefore, an income for the worker and, therefore, must have a value that is reflected in the payroll. To assess these remunerations must adhere to the regulations of the personal income TAX, always bearing in mind that the amount of the salary in kind may not exceed 30% of the total of the perceptions of the worker.

On the value of payments in kind must have an income account, which works the same way as the retainers. That income is imputed to the worker. is the company’s responsibility to calculate it and enter it in the Tax Agency in the model 111, along with the rest of withholdings and included also in the model 190, so that the worker can see the amounts reflected in the tax data to make the Statement of Income.

In addition to the worker, the company is also interested to know how to value the income in kind for the purposes of their inclusion in the quotation base of its workers. In general, you need to quote for these rents according to valuation for the purposes of income TAX. According to the typology, we can find the following casuistic:


  • Vehicle (transfer of use or use). If your company grants the use of a company car to a worker, and it is used for particular purposes, you must impute a payment in kind. In general, the amount to pay each month shall be one-twelfth of 20% of the value of the car (VAT and Tax Registration included). This valuation is completely independent from the years of use of the vehicle, since the law sets no time limit on the allocation of this percentage.
  • the

  • “Those goods or services delivered must be used for particular purposes”.
  • the

  • “In general, rents in kind are traded for the entirety of your matter.”

This annual contribution of 20% of the value of the vehicle should be made only on the proportion of days on which the vehicle has been used in a particular way. That is to say, nuance is essential to be considered in-kind income that the good or service to be used for a particular purpose. In this case, if the vehicle only and exclusively be used for work purposes, not counted as in-kind income; at the other extreme, we have the vehicle only and exclusively used for private purposes, so that the security would count fully as income in kind; if you are using the 50% between uses labor and particular, account shall be taken of such consideration at the time of calculating the corresponding quotation. That is to say, that 20% is charged when the private use of the vehicle is total. If there is a mixed use (that is to say, if the employee uses the vehicle for private purposes but also for uses of the company itself), should only be counted as payment in kind the part of private use.

In this sense, and for a correct and adequate partition of the private use and work-use, is usually accept the criterion of the working days in the year, considering that the use carried out in working days corresponds to a use that is not private, and the use that may be made on non working days corresponds to a private use.

Finally, you must also consider that the job title of the employee allows you to defend that there is a business use of the vehicle (for example, business, visiting clients during the day and then take the car home). In the event that the vehicle is delivered to a manager that only uses it to move from your home to work, should be counted as remuneration in kind the 100% utilization, since the commute from home to work and vice versa fall within the private use of the vehicle.


  • Vehicle (delivery of property). Your valuation must be the cost of acquisition, including taxes.
    In the case of the use or delivery of motor vehicles, the valuation resulting may be reduced by up to 30% when such vehicles are considered energy-efficient, in the terms and conditions specified in the regulations.
  • the

  • Housing. If your company is the owner of the home, you need to quote for one-twelfth of 10% of the cadastral value of the property (or 5% if such value has been revised after 1994).
  • the

  • Rent a house. If company pays for the rental of a dwelling to cede the use of their workers, shall quote for the entire amount.
  • the

  • Loan with interest rates below the legal money. In this case, the valuation shall be equal to the difference between the interest paid by your worker and the type of legal interest rate in force in each moment. For the year 2016, the type of legal interest of the money is set at 3%, and the rate of interest at 3.75%.
  • the

  • If you received amounts in cash or pay cheques for their employees to acquire certain property (as, for example, if you pay the ticket on the train, or if delivered checks restaurant), if it satisfies insurance premiums, or if you make contributions to pension plans, shall quote for the cost that you have had such revenues. The same thing will happen if giving them shares of their own company.
  • the

  • If it is granted any property or service that is going to benefit more than an employee, should be listed at the average cost. That is to say, you must divide the total cost that implies for your company the provision of the service by the number of recipients.
  • the

  • The educational facilities that escolaricen to the children of its employees at a price lower than the market will assess an income equal to the marginal cost we assume that schooling. That is to say, must be quoted because of the added cost they have to bear for the education of that student.
  • the

  • In cases of child support, hosting, travel, premiums, or insurance in general, costs of study and living expenses of the employee and their family members, and the like, we will quote for the cost to the payer, with taxes included.

Autor Cristobal Rueda

En ocasiones el trabajo profesional se convierte también en amigos de clientes. Hoy disponemos de numerosas herramientas digitales que posibilitan y facilitan esa tarea. El blog es una de ellas y siempre ha sido mi preferencia, ya que permite reflexionar sobre el tema. En Perfil_blog a modo de diario profesional en línea compartimos conocimientos profesionales, experiencia e información que puede ser útil para el crecimiento de su empresa. Un abrazo. Cristóbal Rueda, gerente de Perfil Asesor.

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