Back to index
V0297-15 26 January 2015 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · rendimiento neto

Civil liability insurance premiums may be deducted following the cessation of professional activity

An architect who transitioned from self-employed to an employee asks whether they can deduct civil liability insurance derived from their previous activity. The DGT responds that it is deductible as it maintains the nature of an economic activity expense.

The question raised

Question posed: Whether the amount of the premium paid for the subscribed insurance can be considered a tax-deductible expense in Personal Income Tax.

The DGT's ruling

Expenses for civil liability insurance premiums are deductible for determining the net income of the economic activity, even if paid after its cessation, provided they are a consequence of the exercise of said activity. This deduction is applicable provided that the expenses have not been subject to deduction through allocations to provisions for risks and expenses in Corporate Tax.

Email
Contact