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A query was raised regarding whether RETA (Self-Employed Regime) contributions paid by a mutual insurance company during a period of temporary disability should be included in the benefit base. The Directorate-General for Taxes (DGT) ruled that the benefit constitutes earned income and includes the amount of said contributions.
This ruling clarifies the tax treatment of temporary disability benefits, confirming that they are subject to income tax as earned income and that the contributions paid by the mutual insurance company are part of the taxable amount.
The tax team reviews your specific situation.
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