In the case of remuneration in kind to the employee, the payment on account not passed on forms part of the total amount of the income.

The concept of remuneration in kind refers to the provision to an employee of a good, right or service at a price lower than the market price or free of charge.

One of the special features of this type of remuneration is that it is subject to a withholding, a payment on account, which must be calculated by the employee in their self-assessment in order to determine the full amount of the remuneration.

In conclusion:

• If the employer has passed on the corresponding payment on account on the employee’s payroll, only the value of the remuneration must be imputed.
• If the employer has not passed on the payment on account, the valuation will be carried out in the same way, but the amount of the payment must be added.

If you have any doubts about this subject, please do not hesitate to contact us, by telephone to Carles Monfort Codina or by e-mail to cmc@btsasociados.com, we will be delighted to help you.