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V0147-26 27 January 2026 · SG de Impuestos sobre las Personas Jurídicas Criterion in force
IS · renting

Renting vehicle expenses deductible if used for business and conditions met

A company asks whether rental payments for a sports car used by its manager for business travel are deductible. The DGT responds that the expense is deductible if it is used for business, properly accounted for, charged to the period of incurrence, and can be properly documented.

The question raised

Whether the installments accrued for the vehicle rental are deductible for Corporate Income Tax purposes.

The DGT's ruling

Renting expenses are tax-deductible for Corporate Income Tax purposes if the vehicle is used for the development of the entity's activity. To this end, it must comply with the conditions of accounting registration, accrual-based imputation, and documentary justification. The burden of proof regarding the use of the vehicle lies with the party asserting the right, and its documentary assessment is a matter of fact for the Administration.

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