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V1443-17 7 June 2017 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · prestación por desempleo

Lump-sum unemployment benefits exempt from Income Tax if self-employment is maintained for five years

A query was raised regarding whether the exemption for lump-sum unemployment benefits applies to individuals registered as self-employed. The Directorate General for Taxes (DGT) has ruled that it is applicable, provided that the self-employed activity is maintained for a period of five years.

The question raised

Whether the exemption contained in letter n) of Article 7 of the Personal Income Tax Law applies to unemployment benefits in their lump-sum payment modality, given the registration in the Special Regime for Self-Employed Workers.

The DGT's ruling

Unemployment benefits paid as a lump sum are exempt from Personal Income Tax (IRPF) if they are used for the purposes set forth in Royal Decree 1044/1985. In the case of self-employed workers, this exemption is conditional upon the maintenance of the activity for a period of five years.

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