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The DGT confirms that payments made by the employer under a special social security agreement following a collective dismissal have no fiscal impact on the employee.
Question raised: Deductibility of contributions to the special agreement with the Social Security.
The contributions to the special agreement that correspond by law to the employer do not have an impact on the employee's Personal Income Tax (IRPF), neither as income nor as a deductible expense. If the obligation to pay falls on the employee but the company bears the cost, such amounts are considered full income from employment in kind. In this latter case, the employee may deduct said amount as an expense in accordance with current regulations.
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