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V1625-20 27 May 2020 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · estimación directa

Food, vehicle and telephone expenses are deductible if their exclusive link to the business activity is proven

An after-school activities company has enquired about the deductibility of expenses related to food, vehicles, and telephony. The DGT has ruled that these expenses must have a direct link to income and, in the case of vehicles and mobile phones, must be used exclusively for the economic activity.

The question raised

Whether, for the purposes of Personal Income Tax, the following expenses are considered deductible in the determination of the net income from the taxpayer's economic activities:

The DGT's ruling

Expenses for food, invitations, or materials are deductible if their correlation with the generation of income is proven and they meet justification and recording requirements. Vehicle expenses (owned or leased) require that the asset be used exclusively for the activity, given that the taxpayer does not carry out excepted activities. The use of the mobile phone line will be deductible only if it is used exclusively for the conduct of the economic activity.

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