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A self-employed individual inquired whether social security contributions paid by their mutual insurance company during a period of temporary disability are deductible. The Directorate General for Taxes (DGT) ruled that the benefit includes these contributions and that they constitute a deductible expense within the economic activity.
This ruling clarifies the tax treatment of social security contributions paid by mutual insurance companies on behalf of self-employed individuals during sick leave, confirming their status as deductible business expenses.
The tax team reviews your specific situation.
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