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A self-employed individual inquired whether the RETA social security contributions paid by their mutual insurance company during sick leave should be included in the benefit received. The Directorate General for Taxes (DGT) ruled that the benefit includes these contributions, but notes that they act as a deductible expense within the economic activity.
This clarification confirms that while social security contributions paid by mutual insurance companies are part of the total temporary disability benefit, they must be treated as deductible expenses for tax purposes in self-employed activities.
The tax team reviews your specific situation.
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