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A self-employed individual receiving temporary disability benefits has enquired whether the RETA contributions paid by their mutual insurance company are deductible. The Directorate General for Taxes (DGT) has ruled that while these contributions form part of employment income, they constitute a deductible expense.
This ruling clarifies the tax treatment of social security contributions paid on behalf of self-employed individuals by mutual insurance companies, confirming their deductibility against employment income.
The tax team reviews your specific situation.
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