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V1527-22 27 June 2022 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · imputación temporal

RETA contributions from one year cannot be deducted in the following year; instead, the corresponding year must be amended

A self-employed individual asked whether they could deduct 2021 flat-rate RETA contributions that were omitted from their 2020 tax return. The Directorate-General for Taxes (DGT) ruled that expenses must be attributed to the period in which they accrue and that, to include them, the 2020 tax return must be amended.

The question raised

Question posed: Since the RETA (Special Regime for Self-Employed Workers) contributions corresponding to the "flat rate" (60 euros per month) for that year were not deducted in the 2020 Personal Income Tax return, the question is whether they can be deducted in the determination of the net income from the activity for 2021.

The DGT's ruling

Income from economic activities is attributed to the tax period in which it accrues, following the regulations of the Corporate Tax. Therefore, the RETA contributions for 2020 must be attributed to that fiscal year and not to 2021. If the taxpayer did not include them, they may request a rectification of the 2020 tax return. However, if the taxpayer opted for the cash basis (receipts and payments), the attribution will depend on the timing of the payment.

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