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V2631-18 1 October 2018 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · estimación directa

Language classes may be tax-deductible if their link to business income is proven

A lawyer inquired whether the cost of language classes to serve foreign clients could be deducted. The DGT stated that deductibility depends on proving that the expense is directly linked to the economic activity.

The question raised

To determine the deductibility of the cost of language classes for the purpose of determining the net yield of the economic activity carried out.

The DGT's ruling

For an expense to be deductible under the direct estimation method, it must comply with the principle of correlation with income. The link between language courses and the generation of income is a matter of fact that must be verified by the management and inspection bodies. Furthermore, the expense must be justified by an invoice and recorded in the mandatory books.

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