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V2653-18 2 October 2018 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · pluriactividad

Refund of social security contributions due to multi-activity status must be taxed as business income

A worker with both self-employed and salaried status received a Social Security refund for overpaid contributions due to multi-activity status. The Directorate General for Taxes (DGT) has ruled that this amount must be treated as income from professional activity.

The question raised

Taxation in the Personal Income Tax (IRPF) of the aforementioned refund.

The DGT's ruling

Since Social Security contributions have been a deductible expense in the economic activity, their refund must be considered income from said activity. This income shall be attributed to the tax period in which it accrues, following the Corporate Tax regulations, or to the period of collection if that criterion is opted for.

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