Deductibility of social security contributions via special agreements for internships in Personal Income Tax

The Dirección General de Tributos (DGT) has issued a relevant ruling for individuals who make payments to Social Security through special agreements. This measure is typically used to regularize training periods and count such time toward future retirement.

What the DGT has ruled

The inquiry addresses the impact of these payments on the Personal Income Tax (IRPF) return. The binding body determines that Social Security contributions made through a special agreement constitute deductible expenses from gross employment income.

Regarding the temporal imputation of this expense, the DGT establishes that it must be carried out in the tax period in which the quotas become due. This factor depends directly on the payment system selected with the General Social Security Treasury, whether through a single payment or in installments. It is important to highlight that this temporal imputation is independent of the training periods being regularized.

What it means for you

If you are a taxpayer who has opted for a special agreement so that your internship periods count toward your contribution history, these quotas reduce your IRPF taxable base. The key lies in the timing of the payment or when it becomes due:

• If you opt for a single payment, the expense will be fully deductible in the fiscal year in which said payment becomes due.
• If you opt for an installment payment system, the deduction will be distributed according to when each quota becomes due.

This ruling is based on Law 35/2006 (LIRPF) and Order ISM/386/2024.

What you should do

It is necessary to verify the chosen payment system with the General Social Security Treasury to determine the correct fiscal year in which to apply the deduction. Since the imputation depends on when the payment is due and not on the training period being regularized, you must ensure that the payment documentation matches the declared tax period. It is recommended to assess each particular situation to guarantee the correct application of current regulations.