Deductibility of Social Security contributions for training agreements

The Directorate General of Taxes (DGT) has issued a relevant ruling regarding the tax treatment of Social Security contributions made by individuals through special agreements, specifically those arising from training internship periods.

What the DGT has ruled

The inquiry focused on determining whether contributions made through special agreements for past training internships can be deductible in the Personal Income Tax (IRPF) return. The DGT has confirmed that these contributions constitute deductible expenses from gross employment income.

The key point of the resolution lies in the timing of the imputation. The expense must be imputed to the tax period in which it becomes due. Enforceability does not depend on when the training periods took place, but rather on the payment system the subscriber has selected in their commitment to the General Social Security Treasury, whether through a single payment or in installments.

What it means for you

If you are an individual who has entered into a special agreement with Social Security to regularize contributions for training internships carried out previously, this expense is deductible. However, deductibility does not necessarily occur in the year the internships were performed, but in the year in which the payment obligation becomes due according to the payment schedule agreed upon with the Treasury.

This ruling directly links deductibility to the regulations of the IRPF Law and the General Tax Law, ensuring that the expense is recognized in the fiscal year corresponding to the assumed payment commitment.

What you should do

It is necessary to verify the payment system chosen in the agreement with Social Security to determine the correct fiscal year in which the deduction should be applied. Since imputation depends on the enforceability of the payment, it is recommended to:

• Check the due dates of the quotas according to the commitment with the Treasury.
• Ensure that the imputation of the expense coincides with the tax period in which the payment obligation accrues.
• Assess each particular situation to guarantee that the application of the expense in the IRPF is correct according to current regulations.