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A consultation was raised regarding whether the extraordinary benefit for cessation of activity for the self-employed should be taxed under Personal Income Tax (IRPF). The Directorate General for Taxes (DGT) ruled that it is classified as employment income and that the lack of obligation to pay social security contributions has no impact on its tax treatment.
This ruling clarifies the tax treatment of specific benefits for the self-employed, confirming that they are subject to Personal Income Tax as employment income, regardless of social security contribution status.
The tax team reviews your specific situation.
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