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V3132-20 ·20 October 2020 ·consulta-vinculante Medium impact
Tax

Exemption from RETA contributions due to COVID-19 measures is neither income nor a deductible expense for Personal Income Tax

A query was raised regarding whether the exemption from RETA (Self-Employed Regime) contributions resulting from COVID-19 regulations should be taxed as income or deducted as an expense. The Directorate General for Taxes (DGT) ruled that it has no impact on Personal Income Tax (IRPF) as it does not constitute the receipt of income.

In 6 key points

How it affects those involved

This ruling clarifies the tax treatment of contribution exemptions for self-employed individuals, confirming that such exemptions do not trigger tax liabilities nor allow for tax deductions under IRPF.

Lifecycle

2020-10-20PublishedPublished 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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