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V3170-20 22 October 2020 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · rendimiento neto

Travel and private vehicle expenses are deductible if linked and assigned to the business activity

A professional has enquired about the deductibility of travel, meals, and private passenger vehicle expenses. The DGT ruled that these expenses must be proven to correlate with income and, in the case of vehicles, must be exclusively assigned to the economic activity.

The question raised

Deductibility of these expenses for the determination of the net income of the activity.

The DGT's ruling

Travel, hotel, and meal expenses are deductible if they are related to the generation of income, are recorded in the accounting books, and comply with subsistence requirements (hospitality establishments and electronic payment). For passenger vehicle expenses, deductibility requires that the vehicle be an asset assigned to the business and used exclusively for business purposes, as partial assignment is not permitted for this type of asset.

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