Deductibility of special agreement contributions in Personal Income Tax (IRPF)

The Dirección General de Tributos (DGT) has issued a relevant ruling for taxpayers who make contributions to Social Security through the special agreement modality. The inquiry focuses on determining whether these payments, made to count training periods, are considered a tax-deductible expense in the Personal Income Tax (IRPF) return.

What the DGT has ruled

The advisory body has ruled that Social Security contributions made through a special agreement constitute deductible expenses from gross employment income. The ruling establishes that these amounts must be integrated and offset within the taxpayer's general tax base.

Regarding the temporal imputation of said expense, the DGT points out that it depends on the enforceability of the debt. Therefore, the moment the taxpayer can apply the deduction will be determined by the selected payment system, whether through a single lump sum or in installments.

What it means for you

This ruling has a direct impact on self-employed individuals and workers who need to count training periods for their professional careers or to complete grace periods. As they are considered deductible expenses, these payments reduce the tax base upon which the tax is calculated, which represents an optimization of the tax burden regarding employment income.

It is fundamental to take into account that the application of the deduction is strictly linked to the payment regime chosen with Social Security, which conditions the fiscal year in which the tax benefit occurs.

What you should do

Given the possibility of making these payments, it is necessary to analyze the current regulations, specifically Law 35/2006 on IRPF and Order ISM/386/2024, to ensure that the chosen payment modality aligns with the needs of the income tax return. It is recommended to assess each particular situation to determine the impact of the choice of payment system on the tax settlement.