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V2055-24 25 September 2024 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · rendimiento neto del trabajo

Contributions under special training agreements are deductible expenses for Personal Income Tax (IRPF)

A self-employed individual inquired whether payments made under a special agreement with the Social Security system to account for previous training periods are deductible. The Directorate General for Taxes (DGT) ruled that these are indeed deductible expenses from employment income.

The question raised

Whether said payments are considered tax-deductible expenses in the Personal Income Tax (IRPF) return.

The DGT's ruling

Social Security contributions are deductible expenses from gross employment income. Their temporal allocation depends on when they become due, according to the payment system chosen in the agreement. This income is integrated into and offset within the general tax base. Employment income may be negative if the contributions paid exceed the gross income.

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