Skip to content
Back to index
V1361-14 21 May 2014 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · sociedad civil

Maintenance expenses for business owners are deductible if linked to the activity

A partner in a civil society has enquired about the tax treatment of maintenance expenses. The DGT rules that these expenses are deductible provided they are required for the conduct of the business and meet the legal requirements of substantiation and correlation with income.

The question raised

Tax treatment that, for the purposes of Personal Income Tax, must be applied to amounts paid as subsistence expenses.

The DGT's ruling

The subsistence and accommodation expenses of the holders of an economic activity are deductible if they are required for the development of said activity and comply with the requirements of temporal imputation, accounting record, and justification. The correlation with income must be proven, avoiding excessive amounts that cover private needs. The exempt per diem regime does not apply in this case due to the absence of an employment relationship of dependency.

Book your free first meeting