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V1960-19 25 July 2019 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · afectación

Deduction of passenger car expenses permitted only if used exclusively for economic activity

A technical architect inquired whether the purchase and maintenance costs of their passenger car could be deducted. The Directorate General for Taxes (DGT) ruled that, as the vehicle is not used for transporting goods or as a commercial agent's vehicle, its exclusive use for the professional activity must be proven to allow for the deduction of expenses.

The question raised

Deductibility in Personal Income Tax (IRPF) of expenses derived from the purchase and maintenance of the vehicle

The DGT's ruling

To deduct expenses for the acquisition, maintenance, or renting of a passenger vehicle, it must be an asset assigned to the activity. As it is not a case of incidental private use, it is required that the vehicle be used exclusively for the economic activity. This exclusive assignment must be proven through means of evidence admitted in law.

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