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V3130-20 20 October 2020 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · renta

RETA contributions exempt due to COVID-19 measures are neither IRPF income nor deductible expenses

A managing partner has enquired whether the exemption of their self-employed contributions under extraordinary measures must be taxed for IRPF purposes. The DGT has ruled that, as there is no obligation to contribute, these amounts constitute neither income nor an expense.

The question raised

Whether the exemption of RETA quotas in said cases must be considered as income for Personal Income Tax purposes and whether the amount of the exempt quotas must also be considered as a deductible expense and as income from employment paid by the company.

The DGT's ruling

The exemption from RETA contributions derived from extraordinary measure regulations has no impact on Personal Income Tax (IRPF). As there is no obligation to pay, the condition for obtaining income under Article 6 of the Personal Income Tax Law (LIRPF) is not met. Therefore, they are neither gross income nor deductible expenses, nor do they constitute income from employment.

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