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A query 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 its impact on Personal Income Tax (IRPF) in relation to self-employed social security contributions. The Directorate-General for Tax Administration (DGT) has determined that it is classified as employment income and that the lack of an obligation to make social security contributions does not affect the tax treatment.
The tax team reviews your specific situation.
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