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A self-employed individual on temporary disability has enquired about the tax treatment of RETA contributions paid by their collaborating mutual insurance company. The Directorate General for Taxes (DGT) has ruled that the benefit received constitutes employment income and includes the amount of said contributions.
This ruling clarifies that social security benefits received during temporary disability, including the portion corresponding to contributions paid by the mutual insurance company, must be declared as employment income for tax purposes.
The tax team reviews your specific situation.
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