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V1521-24 ·20 June 2024 ·consulta-vinculante Medium impact
Tax

RETA contributions paid by mutual insurance companies are not deductible under the objective estimation method

A self-employed individual under the objective estimation method inquired whether they could deduct RETA contributions paid by their mutual insurance company during a period of temporary disability. The Directorate General for Taxes (DGT) ruled that, although these constitute employment income, they cannot be deducted under this specific calculation method.

In 6 key points

How it affects those involved

This ruling clarifies that self-employed individuals using the objective estimation method cannot offset social security contributions paid by mutual insurance companies against their taxable income, despite their classification as employment income.

Lifecycle

2024-06-20PublishedPublished in the BOE
Official text Based on BOE data (boe.es). Information, not advice.

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This analysis is informational only and does not constitute legal advice or create a client-adviser relationship. BM Consulting.
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