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A taxpayer asks whether RETA contributions paid by their mutual insurance company during a period of temporary disability should be included in their employment income. The DGT rules that while the benefit includes this amount, it will generate 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 benefit received, they are offset by a corresponding deductible expense for self-employed individuals under the direct estimation regime.
The tax team reviews your specific situation.
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