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V1678-22 14 July 2022 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · rendimientos del trabajo

RETA contributions paid by the mutual insurance company during temporary disability are considered earned income

A self-employed individual asks whether the payment of their RETA contributions made by the mutual insurance company during sick leave has implications for Personal Income Tax (IRPF). The DGT responds that said amount is earned income, but it is also a deductible expense.

The question raised

Question posed: Implications for Personal Income Tax regarding the payment of the self-employed individual's contributions by the corresponding mutual insurance company during said situation of temporary disability.

The DGT's ruling

Social Security benefits for temporary disability are earned income pursuant to Article 17.2.a)1 of the LIRPF. The income includes the amount of the RETA contributions paid by the collaborating mutual insurance company. However, this payment of contributions will result in a deductible expense for determining the net income of the economic activity.

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