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A taxpayer inquired whether monthly contributions to the Special Social Security Fund are deductible and if their retirement benefit is tax-exempt. The Directorate General for Taxes (DGT) ruled that these contributions are a deductible expense, but noted that the tax exemption for the benefit is no longer in effect under current regulations.
Taxpayers contributing to the Special Social Security Fund can reduce their taxable income for Personal Income Tax purposes, though retirement benefits from this fund are subject to taxation.
The tax team reviews your specific situation.
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