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V0707-22 ·1 April 2022 ·consulta-vinculante Medium impact
Tax

Self-employed contributions paid by a company count as remuneration for calculating tax withholdings

A query was raised regarding whether a company must include the Social Security contributions of a working partner when calculating their Personal Income Tax (IRPF) withholding. The Directorate General for Tax (DGT) ruled that if the company pays these contributions, they constitute benefits in kind that increase the tax base, even if they are subsequently deducted as social security contributions.

In 6 key points

How it affects those involved

Companies with working partners who are self-employed must account for paid social security contributions as part of the partner's taxable remuneration, affecting the calculation of income tax withholdings.

Lifecycle

2022-04-01PublishedPublished in the BOE
Official text Based on BOE data (boe.es). Information, not advice.

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This analysis is informational only and does not constitute legal advice or create a client-adviser relationship. BM Consulting.
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