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V0723-20 6 April 2020 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · gastos deducibles

Mandatory foreign Social Security contributions are deductible for Personal Income Tax (IRPF)

A Norwegian pensioner residing in Spain inquired whether her Social Security contributions to her country of origin are tax-deductible. The Directorate-General for Taxes (DGT) ruled that if these contributions are mandatory and linked to employment income, they are considered a deductible expense.

The question raised

Consideration of the aforementioned contributions as a deductible expense from employment income.

The DGT's ruling

References to Social Security in IRPF regulations must be understood as equivalent foreign public systems. If the Social Security regulations of the country of origin mandate such contributions and these are linked to the gross employment income declared, they shall be considered a deductible expense.

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