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V0718-20 6 April 2020 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · rendimientos del trabajo

Self-employed contributions paid by a director are deductible as employment income expenses

A director of a limited company contributing to the Special Regime for Self-Employed Workers has asked whether these contributions can be deducted from their Personal Income Tax (IRPF). The Directorate General for Taxes (DGT) has ruled that they can, as such functions are classified as employment income.

The question raised

Deductibility of the contributions paid to Social Security under the Self-Employed Regime in the 2019 Personal Income Tax return filed jointly with a spouse.

The DGT's ruling

Management functions in a commercial entity are classified as income derived from employment. Therefore, the contributions to the Self-Employed Regime mandatory due to the performance of said position are a deductible expense for determining the net employment income. It is possible for the resulting income to be negative if the gross income does not exceed the contributions paid.

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