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A query was raised regarding the Personal Income Tax (IRPF) treatment of a regional subsidy intended to cover RETA (Special Regime for Self-Employed Workers) contributions. The Directorate General of Taxes (DGT) has determined that such aid constitutes income from economic activity and must be recognised as a current subsidy.
Self-employed individuals receiving regional subsidies for social security contributions must include these amounts as business income rather than other types of income, affecting how they calculate their taxable economic activity profits.
The tax team reviews your specific situation.
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