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V0360-21 25 February 2021 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · rendimientos de actividades económicas

Refund of self-employed contributions under flat-rate scheme taxed as income from economic activity

A corporate self-employed professional has enquired whether the refund of Social Security contributions resulting from the application of the flat-rate scheme must be taxed for Personal Income Tax (IRPF) purposes. The Directorate General for Taxes (DGT) has ruled that, as these contributions were previously deducted as expenses, the refund must be recorded as income from the activity in the tax year in which it is approved.

The question raised

Question posed: Taxation under Personal Income Tax (IRPF) of the refund by the General Social Security Treasury of differences in contributions within the Self-Employed Regime due to the application of the "flat rate" to self-employed individuals incorporated as companies.

The DGT's ruling

The refund of the excess contribution, which was tax-deducted as an expense at the time, is considered income from economic activities. This income must be attributed to the tax year in which the right to the refund is recognized. It is not appropriate to file supplementary tax returns for the previous tax years in which the amounts were paid.

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