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V0250-24 29 February 2024 · SG de Tributación de las Operaciones Financieras Criterion in force
IRPF · pluriactividad

Deductibility of RETA contributions and mutual fund payments for Personal Income Tax (IRPF)

A professional inquired whether RETA (Self-Employed Regime) contributions and payments to the Lawyers' Mutual Fund could be deducted from their Personal Income Tax. The Directorate General for Taxes (DGT) ruled that RETA contributions are deductible as expenses against employment or business income, and that mutual fund contributions are deductible as business expenses subject to specific limits.

The question raised

Possibility of deducting, as an expense in the 2023 Personal Income Tax return, contributions to the Lawyers' Mutual Fund and contributions paid to RETA, taking into account the new contribution system for self-employed workers introduced as of January 1, 2023, by Royal Decree-Law 13/2022.

The DGT's ruling

RETA contributions, being a single payment due to multi-activity status, may be deducted as an expense from the net income from employment or from the income from economic activity. Contributions to mutual funds acting as an alternative to RETA are deductible as an activity expense to the extent that they cover Social Security contingencies, subject to the limit of the maximum contribution for common contingencies. The excess over this limit may be subject to a reduction in the taxable base in accordance with the requirements of the Personal Income Tax Law.

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