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V3137-21 17 December 2021 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · rendimiento neto del trabajo

Contributions to the Special Social Security Fund are deductible for Personal Income Tax (IRPF)

A taxpayer inquired whether monthly contributions to the Special Social Security Fund are deductible and if their retirement benefit is tax-exempt. The Directorate General for Taxes (DGT) ruled that these contributions are a deductible expense, but noted that the tax exemption for the benefit is no longer in effect under current regulations.

The question raised

Consideration as a deductible expense of the contributions to the Special Fund.

The DGT's ruling

Contributions to the Special Social Security Fund are considered deductible expenses for the determination of net employment income, as they are included in the concept of Social Security contributions under article 19.2.a) of the Personal Income Tax Law. On the other hand, the exemption of benefits from the Special Fund is not in force in the tax laws regulating Personal Income Tax.

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