Skip to content
Back to index
V1685-20 29 May 2020 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · rendimientos de actividades económicas

Subsidies to offset self-employed contributions are taxed as income from economic activities

A taxpayer inquired about the taxation of a municipal subsidy intended to cover RETA (Special Regime for Self-Employed Workers) contributions. The DGT ruled that such subsidies are considered income from economic activities and must be recognised in accordance with Corporate Tax regulations or via the cash basis of accounting.

The question raised

Taxation of the subsidy received.

The DGT's ruling

The subsidy received to compensate for expenses such as RETA contributions is classified as income from economic activities. Its temporal allocation must follow the Corporate Tax regulations, being allocated to the period of the final concession resolution. If the cash basis of accounting is chosen, the subsidy shall be allocated to the period in which the collection occurs.

Book your free first meeting