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V0959-22 3 May 2022 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · rendimientos del trabajo

RETA contributions paid by a mutual insurance company are considered employment income

A self-employed individual inquired whether RETA contributions paid by their mutual insurance company are subject to tax. The DGT ruled that these payments are classified as employment income.

The question raised

Taxation corresponding to the contributions paid.

The DGT's ruling

Social Security benefits for temporary disability constitute income from employment pursuant to Article 17.2.a).1 of the Personal Income Tax Law (LIRPF). The income includes the amount of RETA contributions paid by the collaborating mutual insurance company. However, said payment of contributions shall be a deductible expense for determining the net income of the economic activity if the direct estimation method is used.

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