Contributions via special agreements for internships are deductible for Personal Income Tax (IRPF)

Individuals who make payments to the Social Security through special agreements to count internship or training periods have a right to a deduction in their income tax return. The Dirección General de Tributos (DGT) has specified the tax treatment of these amounts, linking their deductibility to the enforceability of the debt against the Tesorería General de la Seguridad Social.

What the DGT has resolved

The advisory body has determined that contributions made through special agreements are considered deductible expenses from employment income. The key point of the resolution lies in the temporal imputation of said expense. The deduction must be made in the tax period in which the quotas become enforceable.

This enforceability is governed by the payment system that the subscriber has selected with the Tesorería General de la Seguridad Social, whether through a single payment or through an installment system. The resolution emphasizes that this temporal imputation is independent of the training periods actually completed, prioritizing the payment schedule agreed upon in the agreement.

What this means for you

If you have entered into a special agreement so that your internship periods count toward Social Security, the amounts paid do not constitute a non-deductible expense, but rather an expense that reduces the taxable base of your employment income. However, the moment you can apply this deduction does not necessarily coincide with the year in which you completed the internship, but with the year in which the payment obligation becomes enforceable according to the chosen payment model.

What you should do

It is necessary to verify the payment system agreed upon with the Tesorería General de la Seguridad Social to determine the correct fiscal year in which the deduction should be applied. Since the imputation depends on the enforceability of the quota, it is fundamental to keep the documentation that proves the agreement and the payment schedules to avoid errors in the IRPF declaration. It is recommended to assess each particular situation to ensure that the temporal imputation complies with current regulations.