Employees cannot deduct master's degree tuition fees from Personal Income Tax

The possibility of reducing the taxable base of Personal Income Tax (IRPF) through professional training expenses has been delimited following a recent resolution by the tax authority. The debate centered on whether the cost of pursuing a master's degree could be considered a necessary expense for obtaining employment income.

What the DGT has ruled

The Dirección General de Tributos (DGT) has determined that master's degree tuition is not considered a deductible expense in the determination of net employment income. This criterion is based on Article 19.2 of the Personal Income Tax Law (LIRPF), which establishes a closed list of expenses that can be subtracted from income.

Since the concept of academic training or master's degree tuition does not appear among the expenses permitted by current regulations, the administration maintains that there is no legal basis for its deduction in workers' tax returns.

What this means for you

If you are an employee who has made a financial investment in specialized training, such as a master's degree, to improve your professional profile or access better positions, you must take into account that this expenditure will not directly reduce your tax burden in your IRPF self-assessment. Current regulations are restrictive and only allow the deduction of those concepts that the law lists exhaustively, leaving no room for the interpretation of expenses that may be considered necessary for professional activity but are not explicitly included.

What you should do

Given this situation, it is necessary for taxpayers to review their expenses before filing their tax return to avoid errors in the determination of net income. It is fundamental to distinguish between expenses that the law allows to be deducted and those that, although representing professional improvement, lack regulatory support for their tax application. It is recommended to assess each particular situation and consult the applicable regulations to ensure that the self-assessment strictly adheres to what is established in the LIRPF.