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V0615-22 23 March 2022 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · rendimiento neto

Wages paid to an adult child are deductible if economic activity requirements are met

A retiree asks whether she can deduct from her Personal Income Tax (IRPF) the remuneration paid to her son for working in her business. The Directorate General for Taxes (DGT) responds that these are deductible provided the general requirements for economic activity expenses are satisfied.

The question raised

Deductibility in the Personal Income Tax (IRPF) of the taxpayer regarding the remuneration paid to the child.

The DGT's ruling

The employment benefits of an adult child do not possess a distinct specialty compared to those of any other person. Salaries paid to the child are deductible if they comply with the principle of correlation with income, are substantiated during the tax year, are linked to the activity, have correct temporal imputation, are recorded in the accounting books, and are justified. The child shall receive full employment income for the amounts received.

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