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V1478-21 19 May 2021 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · rendimientos de actividades económicas

Catalan regional aid for the self-employed is not exempt from Personal Income Tax (IRPF)

A query was raised regarding whether a €2,000 grant from the Generalitat de Catalunya for self-employed individuals due to COVID-19 is exempt under Article 7.y) of the LIRPF. The Directorate General for Taxes (DGT) ruled that this exemption does not apply.

The question raised

Whether the exemption established in Article 7.y) of the Tax Law would apply to said aid.

The DGT's ruling

The aid received to compensate for the decrease in income from economic activity qualifies as income from economic activities or, as the case may be, as income from employment. The exemption provided in Article 7.y) of the LIRPF does not apply because the regulations governing the aid do not establish the circumstances of risk of social exclusion or basic needs required by said provision.

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