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V1765-22 26 July 2022 · SG de Tributación de las Operaciones Financieras Criterion in force
IRPF · rendimientos de actividades económicas

Professional association fees are deductible, while mutual insurance contributions have deduction limits

A self-employed lawyer has enquired whether professional association fees and mutual insurance contributions are deductible business expenses. The Directorate General for Taxes (DGT) clarifies that professional association fees are deductible provided they meet general expense requirements, whereas contributions to mutual insurance schemes are subject to specific deduction and reduction rules.

The question raised

Tax treatment of professional association fees and contributions to mutual insurance societies; specifically, whether they are considered deductible expenses of the professional activity.

The DGT's ruling

Professional association fees are deductible provided they are linked to the activity, substantiated, recorded, and justified. Contributions to mutual insurance societies acting as an alternative to the RETA are deductible as business expenses to the extent that they cover contingencies handled by the Social Security, subject to the limit of the maximum contribution for common contingencies. Any excess over said limit may be subject to a reduction in the taxable base in accordance with the requirements of Article 51 of the LIRPF.

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