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V2221-23 27 July 2023 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · rendimientos de actividades económicas

Deductible expenses for the reduction of economic activities are calculated based on their tax amount during the period

A query is made regarding how deductible expenses should be calculated to comply with the 30% limit of gross income required for the reduction under Article 32.2 of the Personal Income Tax Law (LIRPF). The DGT responds that the aggregate of expenses refers to the amount of expenses that are tax deductible in the corresponding tax period.

The question raised

Question posed: For the application of the reduction provided for in Article 32.2 of the Personal Income Tax Law and to comply with the requirement of not exceeding 30 percent of the declared gross income, how should deductible expenses be calculated?

The DGT's ruling

To comply with the requirement that deductible expenses from economic activities do not exceed 30 percent of the declared gross income, it must be understood that the aggregate of deductible expenses is the amount of expenses that are tax deductible in the tax period in which the reduction is applied.

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