The new law expands the deductibility of certain expenses for the self-employed
Last Thursday, June 29th, Congress approved the proposed Law on Urgent Reforms for Self-Employed Workers, a law that includes a series of measures aimed at supporting the development of entrepreneurial activity. The law is pending final approval, and these tax measures are expected to come into effect after the summer.
The law is expected to establish a deduction of up to €26.67 per day, or €48 if working abroad, for subsistence expenses related to business activity, provided that payment is made electronically (by card) at restaurants and hotels. There are no restrictions on these expenses being incurred on working days, nor are there any limitations based on the distance from the workplace.
The new law will also allow self-employed individuals to deduct 50% of the vehicles used in their business activities and related expenses, under the same conditions as VAT regulations. This eliminates the previous distinction between VAT and personal income tax on this matter.
Finally, self-employed individuals who carry out economic activities without a fixed premises, that is, who work from home, will be able to deduct 20% of their supplies , unless the taxpayer or the tax administration proves a higher or lower percentage.
It is important to clarify that these new deductions will continue to be subject to the criteria established by the Tax Authorities, that is, that they are linked to the activity, duly justified with an invoice and recorded in the income and expenses ledger.
Do you have any questions about this topic?
Our team of expert advisors will help you resolve any issues related to our services.
Contact us now
A graduate in Business Administration from the University of Barcelona, she continued her education with a Postgraduate Diploma in Accounting and Management Control from Pompeu Fabra University, and completed various courses in tax and fiscal matters offered by the Terrassa Chamber of Commerce, the Barcelona Bar Association, and the Center for Financial Studies. Before joining Àmbit Assessor in 2001 as a tax and accounting consultant, she worked as an administrative assistant at Caixa Manresa and Banc Sabadell and as a tax information call center operator at the Spanish Tax Agency. For three years, she served as treasurer of the L'Alzinar Recreational and Cultural Society, a position she held concurrently with her work at Àmbit Assessor.
Latest posts by Maribel Isart Llorente
(see all)
Related
