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A consultation was raised regarding whether the extraordinary benefit for cessation of activity under Royal Decree-Law 8/2020 constitutes employment income or income from economic activity, and whether the exemption from RETA social security contributions affects Personal Income Tax (IRPF). The Directorate General for Taxes (DGT) ruled that it is classified as employment income and that the lack of obligation to make contributions does not affect IRPF.
This ruling clarifies the tax treatment of specific social security benefits for the self-employed, confirming they are subject to employment income tax rules regardless of contribution status.
The tax team reviews your specific situation.
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