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V3137-17 4 December 2017 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · renting

The deductibility of renting installments requires the exclusive use of the vehicle for professional activity

An architect inquires whether they can deduct the entirety of the renting installments for a second vehicle for their activity. The DGT responds that deductibility depends on the exclusive use of the vehicle for professional activity.

The question raised

Question posed: Whether the entirety of the renting installments can be deducted as an expense in the Personal Income Tax return regarding the second vehicle to be used for professional activity, and whether there are any limitations in this regard.

The DGT's ruling

For renting installments to be deductible, the vehicle must be used exclusively for economic activity. If the vehicle is also used for private purposes, it is not considered an asset used for business purposes, except in the exceptional cases of mixed vehicles, passenger transport, driving instruction, commercial agents, or habitual assignment of use. In the event of exclusive use, deductibility is governed by Corporate Tax rules, with limits according to the type of contract and the depreciation of the asset.

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