Updated: 12/05/21
2020 Income Tax Return (April to June 2021)
The DGT rules on the taxation of the refund by the Social Security of the differences in Self-Employed Scheme contributions due to the application of the flat rate to self-employed companies. Binding Consultation V0758-21.
It should be remembered that until Supreme Court Ruling 3887/2019, of 3 December, the General Treasury of the Social Security (TGSS) had been interpreting that self-employed companies could not benefit from the flat-rate tax rebate.
We must distinguish between two cases depending on the treatment given by the taxpayer to this expense in each tax return (income from work or income from economic activity):
- Whether it was treated as a deductible expense under Employment Income.
It will have an impact on the tax settlements corresponding to the financial years in which those quotas were included as an expense. It will therefore give rise to the filing of requests for rectification of self-assessments or complementary self-assessments.
As for the late payment interest received, it should be taxed as a capital gain, given that it is compensatory in nature.
- If it was treated as an expense within the Income from Economic Activities.
The amount of the refund of the excess contribution must be allocated as income from the economic activity in the year in which the refund was agreed (regardless of the date on which the payment was actually received). No supplementary tax returns are required for the years in which the amounts refunded were paid.
The amounts refunded may not appear in the tax data. Please note that even if they do not appear, they must be included in the Income Tax Return. Either by means of a rectification of the self-assessment or complementary self-assessment, or by allocating it as income in the year in which the refund has been agreed.
If you have any doubts and still do not know how to solve them, we invite you to contact us. Our expert legal advisors will help you.
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