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

The Directorate General of Taxes (DGT) has issued a relevant criterion regarding the tax treatment of Social Security contributions made through a special internship agreement. This ruling addresses the impact of such payments on the Personal Income Tax (IRPF) return and their correct temporal imputation.

What the DGT has resolved

The body has determined that contributions made via a special internship agreement constitute a deductible expense from gross employment income. The key point of the resolution lies in the timing of said deduction: the quotas must be imputed in the tax period in which they become due.

Enforceability is determined according to the payment system selected by the subscriber, whether through a single payment or in installments. It is important to highlight that this temporal imputation is independent of the training periods being computed through the agreement.

What it means for you

If you are an individual who has entered into a special agreement with the Social Security to compute internship periods, this criterion defines when you can apply the expense in your tax return. It is not about deducting the quotas based on the months of internships completed, but rather based on when the payment obligation becomes due according to the chosen payment method.

For example, if you opt for a single payment system, the entire expense will be deductible in the tax year in which said enforceability occurs, regardless of whether the internship period spans other fiscal years.

What you should do

It is necessary to verify the payment system selected when signing the special agreement to determine the correct fiscal year for the deduction. Since the applicable regulations include Law 35/2006 of the LIRPF and Order ISM/386/2024, it is recommended to analyze the Social Security documentation to ensure that the imputation of the expense coincides with the moment it becomes due. Each particular situation must be assessed to ensure compliance with current regulations.