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V0662-14 11 March 2014 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · actividad económica

Civil liability insurance premiums of a deceased spouse cannot be deducted from one's own Personal Income Tax (IRPF)

A widow has enquired whether she can deduct the premiums for a civil liability insurance policy that she must maintain following the death of her husband, who was a technical surveyor. The Directorate General of Taxes (DGT) has ruled that, as she is not the one carrying out the economic activity, the expense is not deductible in her tax return.

The question raised

Whether, following the death of her husband, the taxpayer may deduct the amount of the premium paid for the aforementioned civil liability insurance in her Personal Income Tax return.

The DGT's ruling

The deductibility of expenses in economic activities requires the principle of correlation between income and expenses, whereby only those incurred in the performance of said activity are deductible. Since the taxpayer does not carry out the economic activity of the deceased, the insurance premiums are not deductible in her Personal Income Tax return. Expenses derived from the activity of the deceased must be attributed to the tax return of the deceased's final tax period.

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