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V2059-21 ·9 July 2021 ·consulta-vinculante Medium impact
Tax

RETA social security contributions are deductible from net income from economic activity

A self-employed individual inquired whether social security contributions paid after applying subsidies can be deducted as a business expense. The Directorate General for Taxes (DGT) ruled that RETA contributions are deductible under the direct estimation method.

In 5 key points

How it affects those involved

This clarification confirms that self-employed individuals using the direct estimation method can reduce their taxable net income by deducting their social security contributions.

Lifecycle

2021-07-09PublishedPublished 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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