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V2939-18 14 November 2018 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · estimación directa

Deductibility of a Master's degree for the self-employed depends on its correlation with business income

A self-employed professional has enquired whether the cost of a Master's degree related to their professional activity can be deducted. The Directorate General for Taxes (DGT) indicates that deductibility depends on proving the link between the expense and the activity, as well as meeting requirements for justification and accounting records.

The question raised

How the cost of the aforementioned master's degree can be tax-deductible for Personal Income Tax (IRPF) purposes.

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 said link is a matter of fact that falls under the jurisdiction of the inspection. The expense must be justified by an invoice and recorded in the accounting books. Its temporal imputation is carried out according to the accrual principle, unless the cash basis is chosen.

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