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V3014-20 6 October 2020 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · estimación directa

Deductibility of a Master's degree depends on its correlation with economic activity income

A translator has enquired whether the cost of a Master's degree can be deducted as a training expense within her 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 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 an expense to be deductible under the direct estimation method, it must comply with the principle of correlation with income. The verification of whether the master's degree is linked to the generation of income is a question of fact that must be determined by the management and inspection bodies. Furthermore, the expense must be justified by an invoice or supporting document and recorded in the mandatory registration books.

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