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V0099-21 28 January 2021 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · prestación extraordinaria

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

A query was raised regarding whether the extraordinary benefit for cessation of activity, established in Royal Decree-Law 8/2020, should be subject to Personal Income Tax (IRPF). The Directorate-General for Taxes (DGT) ruled 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 is a Social Security benefit whose nature is analogous to the economic benefit for cessation of activity under Law 32/2010. Therefore, it is classified as income from employment, pursuant to Article 17.1 b) of Law 35/2006, as this includes unemployment benefits understood in a broad sense.

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