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V2577-19 19 September 2019 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · estimación directa

Deductibility of master's degree costs depends on correlation with business income

A civil engineer has enquired whether the cost of an official master's degree can be deducted as a training expense within their professional activity. The Directorate General for Taxes (DGT) indicates that deductibility is conditional upon proving the correlation between the expense and the income generated.

The question raised

To determine the deductibility of the cost of the aforementioned official master's degree as training expenses, for the purpose of determining the net yield of the economic activity carried out.

The DGT's ruling

For the expense of a master's degree to be deductible under the direct estimation method, its correlation with the income of the economic activity must be proven. The verification of such a link is a matter of fact that falls under the responsibility of the management and inspection bodies. Furthermore, the expense must be justified by an invoice and recorded in the mandatory books.

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