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V2109-21 15 July 2021 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · rendimientos del trabajo

Self-employed cessation of activity benefits taxed as employment income

A query was raised regarding whether the cessation of activity benefit for the self-employed, established under Royal Decree-Law 2/2021, constitutes employment income or income from economic activity. The Directorate-General for Taxes (DGT) ruled that it is classified as employment income.

The question raised

Whether said benefit has the nature of employment income or of economic activity.

The DGT's ruling

The benefit for cessation of activity is an extraordinary Social Security benefit whose nature is analogous to the economic benefit for cessation of activity for self-employed workers. Therefore, it is classified as income from employment pursuant to Article 17.1 b) of Law 35/2006. Employment income includes the total amount of the benefit received, including the amount of contributions for common contingencies paid by the mutual insurance company or the Social Sea Institute.

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