Contributions to the special agreement with Social Security will be deductible for Personal Income Tax (IRPF)

The Directorate General of Taxation (DGT) has clarified the tax treatment of contributions paid by taxpayers who enter into a special agreement with Social Security to maintain their benefit rights. This criterion has a direct impact on the determination of the taxable base for Personal Income Tax (IRPF).

What the DGT has resolved

The advisory body has determined that contributions to the special agreement with Social Security constitute a deductible expense in the determination of net employment income. This criterion is based on Article 19.2 of Law 35/2006 (LIRPF).

The resolution establishes that, since the special agreement implies a situation similar to being registered in the General Social Security Regime and the contributions are mandatory for those who sign said agreement, they fulfill the nature of expenses necessary for obtaining income. Likewise, the DGT specifies that this treatment is applicable regardless of whether the taxpayer opts for individual or joint taxation in their tax return.

What it means for you

If you are a natural person who has entered into a special agreement with Social Security to preserve your benefit rights, you will be able to include these contributions as a deductible expense in your tax return. This results in a reduction of the net employment income, which directly impacts the taxable base upon which the tax is calculated.

This scenario is of particular relevance to professionals or workers who, due to their mobility or residence situation, maintain this type of agreement to ensure their future coverage in the Social Security system.

What you should do

Given the application of this criterion, it is necessary to ensure that the contributions are correctly recorded in the tax return for the corresponding fiscal year. It is recommended to:

• Verify that the paid contributions effectively correspond to a duly formalized special agreement.
• Check that the deduction is applied in the section for deductible expenses of employment income.
• Assess each particular situation, as the application of this criterion depends on the nature of the relationship with Social Security and compliance with current regulations.