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V0080-21 22 January 2021 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · estimación directa

Deductibility of university degree costs depends on correlation with business income

An economist inquired whether the cost of studying a Law degree to complement their professional activity could be deducted as an expense. The Directorate General for Taxes (DGT) ruled that deductibility depends on proving a correlation between the expense and the income generated.

The question raised

To determine the deductibility as an expense of the cost of the aforementioned degree.

The DGT's ruling

The deductibility of expenses is conditioned by the principle of their correlation with income. For the cost of a degree to be deductible, it must be proven that it was incurred in the course of the activity and that there is a link to the generation of income. The verification of said correlation is a matter of fact that falls under the responsibility of the management and inspection bodies.

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