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V2108-20 24 June 2020 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · rendimientos de actividades económicas

Deductibility of travel, vehicle and housing expenses under conditions of allocation and correlation

A partner providing services to his companies asks whether travel, personal vehicle and part of his home expenses can be deducted. The DGT responds that deductibility depends on proper allocation to the activity, justification of expenses, and compliance with specific limits.

The question raised

Question raised: Whether, for the purposes of Personal Income Tax, the following are considered deductible expenses for the taxpayer:

The DGT's ruling

Travel expenses are deductible if they are correlated with income and comply with registration and justification requirements, subject to limits on subsistence. The use of a passenger vehicle requires exclusive allocation to the activity, except for legal exceptions. Housing allows for partial allocation of ownership and utility expenses (the latter subject to the 30% rule based on the proportion of square meters).

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