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V0696-22 30 March 2022 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · estimación directa

Deductibility of foreign degree recognition expenses depends on their correlation with income

An agricultural engineer inquires whether she can deduct the expenses related to the recognition of her US doctorate within her professional activity. The Directorate General for Taxes (DGT) indicates that deductibility depends on proving that the expense is linked to the generation of income and is properly substantiated.

The question raised

For the purposes of determining the net income of the economic activity carried out, the deductibility of expenses for the recognition in Spain of a doctoral degree obtained in the United States.

The DGT's ruling

For the direct estimation method, the deductibility of expenses is subject to the principle of correlation with income. It must be proven that the expense was incurred in the course of the activity in order to be deductible. The verification of such connection is a matter of fact that falls under the responsibility of the management and inspection bodies. Furthermore, the expense must be justified by an invoice or equivalent document and recorded in the mandatory books.

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