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Practical Income Manual 2021.

4. Expenses of the owner of the activity

The following concepts that appear differentiated in the IRPF declaration are included within this category:

a. Social security or contributions to alternative mutual societies of the owner of the activity

Are included:

  1. The contributions of the owner of the activity to the Special Regime for Self-Employed Workers (RETA) or,

    Covid-19 : the total or partial exclusion from the payment of the RETA fees, as a consequence of the application of the extraordinary urgent measures to address the economic and social impact of covid-19 contained in article 6 of Royal Decree-Law 11/2021, of May 27, on urgent measures for the defense of employment, economic reactivation and the protection of self-employed workers , in as derived from a lack of obligation or exemption, determines its lack of impact on personal income tax, as it does not correspond to any of the assumptions of obtaining income established in article 6 of the Personal Income Tax Law, therefore not having the nature of income. deductible expense for determining income.

  2. Where applicable, the contributions made by the owner of the activity to the Social Security Mutual Funds when they act as alternatives to the aforementioned special Social Security regime.

    Specialties in personal income tax for contributions to Mutual Provident Insurance Social of the businessman or professional himself

    Regulations (Art. 30.2.1 Law Personal Income Tax )

    As a general rule, contributions to social security mutual societies of the businessman or professional do not constitute a deductible expense for determining the net income of the activity, given that they can reduce the taxpayer's tax base in accordance with the requirements and limits established by law. such effect.

    See in this regard in Chapter 13 the reductions for contributions and contributions to social security systems .

    However, the amounts paid under insurance contracts concluded with social security mutual societies by professionals not integrated into the special Social Security regime for self-employed or self-employed workers are considered deductible expenses of the activity when, In order to comply with the obligation provided for in the fifteenth Additional Provision of Law 30/1995, of November 8, on the Regulation and Supervision of Private Insurance, they act as alternatives to the special Social Security regime, in the part that Its purpose is to cover contingencies covered by said special regime, with the limit of the maximum quota for common contingencies that is established in each financial year.

    The fifteenth Additional Provision of Law 30/1995 has been repealed by Royal Legislative Decree 8/2015, of October 30, which approves the consolidated text of the General Law of Social Security, and integrated into the Additional Provision eighteenth of said consolidated text. Therefore, the reference made to the repealed provision will be understood to be made to the corresponding provision of the consolidated text.

    In addition, it must be taken into account for the purposes of the limit of the maximum quota for common contingencies that is established in each financial year that, for 2021, the contribution for common contingencies in the RETA that regulates article 15 of Order TMS/83 is extended. /2019, of January 31, which develops the legal rules for Social Security contributions, unemployment, protection for cessation of activity, Salary Guarantee Fund and professional training for the 2019 financial year (BOE of February 2). Said article establishes a maximum contribution base of 4,070.10 euros per month and, in accordance with the provisions of the aforementioned article 15, the maximum contribution rate for common contingencies is 28.30 percent. Therefore, the maximum fee for common contingencies in 2021 is 13,822.06 euros [0.283 x (4,070.10 x 12)].

    When the contributions exceed this limit, the excess may be subject to a reduction in the taxable base of Personal Income Tax , although only in the part that is intended to cover the same contingencies as the pension plans and with the limits and requirements indicated in Chapter 13 in the section corresponding to "Reductions for contributions and contributions to social security systems."

b. Living expenses of the taxpayer himself incurred in the development of economic activity

Regulations: Art. 30.2.5.c) Personal Income Tax Law

Taxpayers may deduct maintenance expenses that meet the following requirements in order to determine the net income of the economic activity in direct estimation:

  • That they are expenses of the taxpayer himself.

  • That are carried out in the development of economic activity. That is, they are specific to the activity.

  • That occur in restaurant and hospitality establishments.

  • That are paid using any electronic means of payment.

  • That they do not exceed the quantitative limits established by regulation in article 9.A.3.a) of the Personal Income Tax Regulations for allowances and allowances for normal maintenance expenses of workers.

    The referral that the Personal Income Tax Law makes for the maintenance expenses of businessmen or professionals to the regulatory regulation established for the allowances and allowances for normal maintenance expenses of workers contained in article 9 of the IRPF Regulation, is limited to the quantitative limits established for said maintenance expenses, without, consequently, said remission contemplating expenses other than maintenance expenses, such as stay, nor other aspects regulated in article 9 regarding maintenance expenses other than their quantitative limits, given their different nature.

    In that sense, while the allowances constitute assignments made by the employer to the employed worker who, by virtue of the organizational power that assists the employer, must travel outside his workplace to carry out his work; The deductible expenses for the maintenance of the businessman or professional referred to in article 30.2.5 of the Personal Income Tax Law are expenses incurred by the businessman or professional himself, in the development of his activity. economical.

    These limits are:

    (*) It must be a municipality other than the taxpayer's usual place of work and the one that constitutes his or her residence..(Back)
    Staying overnight in a different municipality (*) 53.34 euros/day 91.35 euros/day
    Without spending the night in a different municipality 26.67 euros/day 48.08 euros/day

    The excess over said amounts cannot be deducted.

Note: The taxpayer must keep, during the maximum limitation period, providing when required for this purpose, supporting documents for expenses to verify compliance with the requirements demanded by the standard.