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V2323-20 7 July 2020 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · estimación directa

Salaries of spouses or minor children may be deductible if employment and social security requirements are met

A taxpayer inquired whether they could deduct the salary paid to their spouse as a business expense. The Directorate General for Taxes (DGT) ruled that this is permissible provided there is a formal employment contract, registration with the relevant Social Security scheme, and the salary is consistent with market rates.

The question raised

Whether the salary paid to a spouse can be considered as deductible expenses of the activity carried out.

The DGT's ruling

To deduct the remuneration of a spouse or minor children living with the taxpayer, an employment contract and affiliation with the General Regime or special regimes for employees must be proven. The amounts may not exceed market rates according to their professional qualifications. In the event that Social Security does not admit affiliation with the General Regime and includes them in the Special Regime for Self-Employed Workers, the DGT allows the deduction if labor dependency and the remaining requirements are proven. These remunerations are considered income from employment for the recipient.

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