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V2489-24 9 December 2024 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · estimación directa

Spouse's salary is deductible if they work in the business under an employment contract and Social Security

A query was raised regarding whether the salary paid to a spouse working within the taxpayer's economic activity is a deductible expense for Personal Income Tax (IRPF). The Directorate General for Tax (DGT) ruled that it is deductible provided there is a formal employment contract, affiliation with the relevant Social Security scheme, and the remuneration does not exceed market rates.

The question raised

Whether the salary paid to the spouse for the work performed in the activity is considered a deductible expense for Personal Income Tax (IRPF) purposes.

The DGT's ruling

To deduct the spouse's remuneration under the direct estimation method, it must be proven through an employment contract and Social Security affiliation that they work habitually and with continuity. The affiliation must be with the General Regime or special regimes for employees, not with the Special Regime for Self-Employed Workers. The amounts must not exceed market rates according to their qualifications and work. In the event that Social Security rejects affiliation with the General Regime and includes the family member in the Special Regime, the expense shall be deductible if labor dependency and the remaining requirements are proven.

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