Contributions to the special agreement with Social Security are deductible when they become due

The management of contributions through special agreements with Social Security raises doubts regarding the exact moment these contributions can be integrated as deductible expenses in the Personal Income Tax (IRPF) return. The Directorate General of Taxes (DGT) has specified the criteria to determine the applicable tax period.

What the DGT has resolved

The Administration has confirmed that Social Security contributions corresponding to the worker constitute deductible expenses from gross employment income. However, the key lies in timing: these expenses must be allocated to the tax period in which they become due.

The enforceability of the installment does not necessarily depend on the calendar year in which the payment is made, but rather on the payment system selected by the interested party in their payment commitment with the General Treasury of Social Security. The deadline for paying these installments will be governed by the specific regulations of the special agreement or, failing that, by the regime from which these installments derive.

What it means for you

If you are an individual making contributions through a special agreement to maintain Social Security coverage, you must take into account that the right to deduction is linked to the moment when the payment obligation becomes due to the Administration.

This implies that if the chosen payment system determines that an installment is due in a specific fiscal year, that is the moment it must be accounted for as an expense in the IRPF return. It is not a criterion based exclusively on cash flow or the year the benefit accrues, but on the enforceability of the tax debt according to the signed payment commitment.

What you should do

It is necessary to review the payment commitment established with the General Treasury of Social Security to know the exact schedule of when installments become due. Knowing this schedule allows you to determine precisely whether the contributions corresponding to a fiscal year should be declared in the current tax period or the next, avoiding errors in the allocation of employment income.