The National Treasury is raising the collection of exempted income tax mileage which has been frozen for 18 years

Good news for workers who regularly have to travel for work and are compensated by their companies for doing so mileage done. He Treasury he announced this Monday in State official gazette corresponding ministerial orders raising compensation for these travel expenses to public servants of the General State Administration, who will receive 0.26 euros per kilometer traveled with their personal vehicle, seven cents more than they received until now.

But the measure does not only benefit public workers, as the Treasury also raises the maximum amount that is exempt from income tax (personal income tax) for wage earners in the private sector for those movement costs. Thus, regardless of what the company pays (the amount of mileage is agreed in collective agreements), the travel allowance will be exempt from tax if it does not exceed 0.26 euros per kilometer traveled. Until now, as in the case of civil servants, only the first 0.19 euros were tax-free, which is a lower figure than what most companies pay.

The amount exempted from transport costs has not been revised since December 2005, when the minister was the late Pedro Solbes, and has become outdated, especially due to the rise in fuel prices after the end of the pandemic and the outbreak of the war in Ukraine, which forced a revision of the mileage price in many contracts. .