Skip to content
Back to index
V2391-19 11 September 2019 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · rendimientos del trabajo

Reimbursement of Social Security special agreement costs is taxable as employment income

A worker on leave of absence has requested clarification on whether company reimbursement for the costs of their special Social Security agreement is subject to Personal Income Tax (IRPF). The Directorate General for Taxes (DGT) has ruled that these amounts constitute employment income and are subject to tax withholding.

The question raised

Taxation under Personal Income Tax on the amounts received by the applicant to finance the cost of the special agreement with the Social Security. Withholdings.

The DGT's ruling

The amounts received to finance the cost of the special agreement with the Social Security have the nature of employment income. To calculate the withholding tax, the company must include this amount in the total amount of remuneration, but it may reduce said base by the contributions paid by the worker to the agreement, provided that the worker provides proof thereof.

Book your free first meeting