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V1167-14 28 April 2014 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · rendimiento neto del trabajo

Social Security special agreement contributions for a daughter cannot be deducted from parents' Income Tax

A taxpayer inquired whether Social Security special agreement contributions paid for their disabled daughter are deductible from their Personal Income Tax (IRPF). The Directorate General for Taxes (DGT) ruled that they are not deductible because the daughter does not receive employment income and is therefore ineligible for joint taxation with her parents.

The question raised

Consideration of the deductibility of expenses from employment income regarding Social Security contributions paid under the special agreement regulated by Royal Decree 156/2013, of March 1, in the Personal Income Tax returns to be filed by the parents.

The DGT's ruling

Social Security contributions are only deductible expenses for those receiving income from employment, a condition that is not met if the daughter does not engage in professional activity. Furthermore, the daughter cannot be part of the family unit for joint taxation as she is neither judicially incapacitated nor subject to extended or reinstated parental authority.

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