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V0375-22 25 February 2022 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · rendimientos del trabajo

Social Security temporary disability benefits are classified as employment income

A query was raised regarding whether Social Security's payment of self-employed contributions during a period of temporary disability affects Personal Income Tax (IRPF). The Directorate-General for Taxes (DGT) ruled that the full benefit constitutes employment income, which includes the amount of contributions paid by Social Security.

The question raised

Impact on Personal Income Tax regarding the payment of self-employed contributions by the Social Security during said situation of temporary disability.

The DGT's ruling

Social Security benefits for temporary disability constitute income from employment pursuant to Article 17.2.a)1 of Law 35/2006. The income comprises the entirety of the benefit, including the amount of the contributions to the RETA paid by the Social Security on behalf of the self-employed individual. This payment of contributions shall give rise to a deductible expense for the purpose of determining the net income of the economic activity under the direct estimation method.

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