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V3376-14 23 December 2014 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · prestación por desempleo

Lump-sum unemployment benefits for the self-employed are exempt from Income Tax

A taxpayer inquired whether a lump-sum unemployment benefit received to subsidise Social Security contributions as a self-employed worker is exempt. The Directorate General of Taxes (DGT) confirmed that this amount is exempt from Personal Income Tax (IRPF).

The question raised

Application of the exemption contained in letter n) of Article 7 of the Personal Income Tax Law.

The DGT's ruling

Unemployment benefits received in the lump-sum payment modality are exempt from tax. In the case of self-employed workers, the exemption is conditional upon the maintenance of the activity for a period of five years.

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