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V3089-23 24 November 2023 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · estimación directa

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

A consultant has enquired whether expenses for a business management master's degree can be deducted from their Personal Income Tax (IRPF). The Directorate General for Taxes (DGT) states that deductibility is conditional upon proving that the expense was incurred in the course of business activities and is directly correlated with income generation.

The question raised

Whether the expenses associated with the master's degree are deductible for Personal Income Tax (IRPF) purposes when determining the net yield of the activity.

The DGT's ruling

In the direct estimation method, the deductibility of expenses requires proof of their correlation with the income from the activity. The verification of said link is a matter of fact that must be determined by the management and inspection bodies. Furthermore, the expense must be justified by an invoice or equivalent document and recorded in the mandatory registration books.

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