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A taxpayer inquired about the taxation of a municipal subsidy intended to cover RETA (Special Regime for Self-Employed Workers) contributions. The DGT ruled that such subsidies are considered income from economic activities and must be recognised in accordance with Corporate Tax regulations or via the cash basis of accounting.
This ruling clarifies the tax treatment of public subsidies received by self-employed individuals, ensuring they are correctly integrated into economic activity income rather than being treated as other types of income.
The tax team reviews your specific situation.
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