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V0098-21 28 January 2021 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · rendimientos del trabajo

Extraordinary benefit for self-employed cessation of activity taxed as employment income

An inquirer asks how the extraordinary benefit for cessation of activity under Royal Decree-Law 8/2020 should be taxed. The DGT rules that this benefit is classified as employment income.

The question raised

Taxation of the aforementioned benefit.

The DGT's ruling

The extraordinary benefit for cessation of activity for self-employed entrepreneurs or professionals is a Social Security benefit whose nature is analogous to the economic benefit for cessation of activity under Law 32/2010. Therefore, it must be classified as income from employment pursuant to Article 17.1 b) of Law 35/2006, as this concept includes unemployment benefits understood in a broad sense.

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