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V1908-20 12 June 2020 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · rentas en especie

RETA contributions paid by a company are treated as benefits in kind and deductible expenses for the administrator

A sole administrator has enquired whether RETA (Special Regime for Self-Employed Workers) contributions paid by their company can be deducted as an expense. The Directorate General for Tax Affairs (DGT) has ruled that if the company bears the cost, it is considered a benefit in kind, yet remains a deductible expense for the administrator.

The question raised

Consideration of the payment of RETA contributions as a deductible expense for the administrator.

The DGT's ruling

If the company pays the RETA (Special Regime for Self-Employed Workers) contributions for the administrator, these are considered remuneration in kind. However, such contributions shall be considered a deductible expense for the administrator to determine their net income from employment, regardless of whether the entity acts as a payment intermediary or bears the cost.

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