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V1521-24 20 June 2024 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · estimación objetiva

RETA contributions paid by mutual insurance companies are not deductible under the objective estimation method

A self-employed individual under the objective estimation method inquired whether they could deduct RETA contributions paid by their mutual insurance company during a period of temporary disability. The Directorate General for Taxes (DGT) ruled that, although these constitute employment income, they cannot be deducted under this specific calculation method.

The question raised

Deductibility of Social Security contributions paid during said period.

The DGT's ruling

Benefits for temporary disability are considered income from employment and include the amount of RETA contributions paid by the mutual insurance company. However, under the objective estimation method, expenses cannot be deducted, except for depreciation of fixed assets. Therefore, RETA contributions are not deductible in the calculation of net income by modules.

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