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V0707-22 1 April 2022 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · retribución en especie

Self-employed contributions paid by a company count as remuneration for calculating tax withholdings

A query was raised regarding whether a company must include the Social Security contributions of a working partner when calculating their Personal Income Tax (IRPF) withholding. The Directorate General for Tax (DGT) ruled that if the company pays these contributions, they constitute benefits in kind that increase the tax base, even if they are subsequently deducted as social security contributions.

The question raised

Whether the Social Security contributions for the self-employed regime paid by an individual must be taken into account by the company to which they provide services when calculating the withholding tax rate on employment income for Personal Income Tax purposes.

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