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V1087-19 21 May 2019 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · rendimiento neto del trabajo

Contributions to the Special Social Security Fund are deductible for Personal Income Tax (IRPF)

An official from the National Social Security Institute has enquired whether monthly contributions to the Special Social Security Fund are tax-deductible. The Directorate General for Taxes (DGT) has ruled that they are, as they are classified as Social Security contributions or mandatory general mutual funds.

The question raised

Consideration of these contributions as a deductible expense from gross employment income.

The DGT's ruling

Contributions to the Special Social Security Fund are considered deductible expenses for the determination of net employment income. This is because they fall within the concept of social security contributions or mandatory general mutual funds for civil servants provided for in Article 19.2.a) of the Personal Income Tax Law.

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