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V0755-21 30 March 2021 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · rendimientos del trabajo

Extraordinary benefits for self-employed individuals due to COVID-19 are taxed as income from employment

A query is made regarding the taxation of aid received by self-employed individuals due to the COVID-19 crisis and the implications if such aid must be returned. The DGT determines that these benefits constitute income from employment and that, if they are annulled, the tax return for the fiscal year in which they were received must be rectified.

The question raised

Corresponding taxation of the amounts returned.

The DGT's ruling

Extraordinary benefits for self-employed individuals due to the COVID-19 crisis have the nature of income from employment, pursuant to Article 17.1 b) of Law 35/2006. If the administrative acts granting the right to the benefit are annulled, the restitution of the amounts does not affect the tax return of the year in which the reimbursement occurs, but rather the tax settlement of the year in which they were received must be rectified. If the collection took place in the current fiscal year and has not yet been declared, no action is required as it no longer possesses the nature of income following its annulment.

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