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V0789-22 ·11 April 2022 ·consulta-vinculante Medium impact
Tax

Deductibility of expenses requires an economic activity and correlation with income

A retired doctor inquired whether they could deduct expenses related to their scientific work (professional fees, conferences, materials) for Personal Income Tax (IRPF) purposes. The Directorate General of Taxes (DGT) ruled that to deduct expenses, an economic activity must first exist and such expenses must be linked to the generation of income.

In 6 key points

How it affects those involved

Taxpayers must ensure that any expenses claimed for deduction are directly related to a formal economic activity aimed at generating income, rather than purely personal or professional development without commercial intent.

Lifecycle

2022-04-11PublishedPublished in the BOE
Official text Based on BOE data (boe.es). Information, not advice.

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This analysis is informational only and does not constitute legal advice or create a client-adviser relationship. BM Consulting.
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