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V3271-23 19 December 2023 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · rendimientos íntegros del trabajo

Social Security special agreement contributions paid by the company are cash income and deductible expenses

An employee has enquired whether the amount provided by their former company to cover Social Security special agreement contributions is deductible. The DGT has ruled that the funds received constitute cash employment income, but the contributions paid are indeed a deductible expense.

The question raised

Whether said contributions are considered a deductible expense for the purpose of calculating the taxpayer's net income from employment.

The DGT's ruling

The payment of amounts by the company for the employee to pay the contributions of a special agreement constitutes full earned income from employment of a monetary nature. However, said Social Security contributions made through the special agreement are considered deductible expenses for the purpose of determining the net income from employment.

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