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V3075-20 14 October 2020 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · estimación directa

Salaries and social security contributions for family members may be deductible if market conditions and labour dependency are met

A taxpayer inquired whether they could deduct the salary and Social Security contributions of their spouse and adult child as business expenses. The Directorate General for Tax (DGT) clarified that while special deductibility rules apply to spouses and minor children, adult children are subject to general rules regarding expenses linked to the business activity.

The question raised

Deductibility of the salary and Social Security contributions of the spouse and the adult child.

The DGT's ruling

For spouses and minor children, remunerations are deductible if they are evidenced by an employment contract, Social Security affiliation (not RETA) and do not exceed market prices. In the event that Social Security does not permit affiliation with the General Regime, the DGT admits deductibility if labor dependency is proven. For adult children, salaries and contributions are deductible provided they comply with the principle of correlation with income and the general requirements for registration and justification.

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