4. Expenses of the activity owner

The following concepts are included in this category, which are differentiated in the IRPF declaration:

a. Social security or contributions to alternative mutual funds of the activity holder

Are included:

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

   Covid-19 : the exemption from the obligation to pay contributions in favor of self-employed workers who have received some form of benefit for cessation of activity under the provisions of Royal Decree-Law 18/2021, of September 28, on urgent measures for the protection of employment, economic recovery and improvement of the labor market referred to in article 1 of Royal Decree-Law 2/2022, of February 22, by which urgent measures are adopted for the protection of self-employed workers, for the transition towards structural mechanisms for the defense of employment, and for the economic and social recovery of the island of La Palma, and certain measures are extended to deal with situations of social and economic vulnerability, determines its lack of impact on personal income tax, as it does not correspond to any of the cases of obtaining income established in article 6 of the Personal Income Tax Law, therefore not having the nature of full income or, correlatively, that of deductible expense for the determination of income.

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

   Specialties in the Personal Income Tax of contributions to Mutual Insurance Societies Social of the entrepreneur or professional himself

   Regulations (Art. 30.2.1 Law IRPF )

   As a general rule, contributions to social security mutual funds of the entrepreneur or professional do not constitute a deductible expense for determining the net income of the activity, given that they may reduce the taxpayer's tax base in accordance with the requirements and limits established for this purpose.

   See Chapter 13 for reductions for contributions and contributions to social security systems .

   However, amounts paid under insurance contracts entered into with mutual insurance companies by professionals not included in the special Social Security regime for self-employed workers or freelancers are considered deductible expenses of the activity when, for the purposes of complying 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 aims to cover contingencies attended to 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 on Social Security, and integrated into the eighteenth Additional Provision of said consolidated text. Therefore, the reference made to the repealed provision shall be understood as being made to the corresponding provision of the consolidated text.

   Furthermore, for the purposes of the limit on the maximum contribution for common contingencies established in each financial year, it must be taken into account that, for 2022, article 106 of Law 22/2021 on the General State Budget for the year 2022, and Order PCM/244/2022, of March 30, which develops the legal regulations on Social Security contributions, unemployment, protection for cessation of activity, Wage Guarantee Fund and vocational training for the year 2022 ( BOE of March 31), establish a maximum limit for the contribution base of 4,139.40 euros per month and set a maximum contribution rate for common contingencies of 28.30 percent. Therefore, the maximum fee for common contingencies in 2022 is 14,057.40 euros [0.283 x (4,139.40 x 12)].

   When contributions exceed this limit, the excess may be subject to a reduction in the taxable base of IRPF , although only in the part that is intended to cover the same contingencies as 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. Maintenance expenses of the taxpayer himself incurred in the development of the economic activity

Regulations: Art. 30.2.5.c) Law Income Tax

Taxpayers may deduct maintenance expenses that meet the following requirements for determining the net income from 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.

  For these purposes, it should be noted that the fact that maintenance expenses correspond to a working day - regardless of the fact that in business or professional activities it cannot be generally spoken of as the existence of a work calendar - does not in itself imply that said expenses are considered to be expenses incurred in the development of an economic activity.

• That they occur in catering and hospitality establishments.

• That they 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 Regulation for allowances and allowances for normal maintenance expenses of workers.

  The reference that the Personal Income Tax Law makes for the maintenance expenses of business owners or professionals to the regulatory regulation established for the allowances and allowances for normal maintenance expenses of workers contained in article 9 of the Personal Income Tax Regulation , is limited to the quantitative limits established for said maintenance expenses, without, consequently, said reference considering expenses other than maintenance expenses, such as lodging expenses, or other aspects regulated in article 9 regarding maintenance expenses other than their quantitative limits, given their different nature.

  In this sense, while allowances constitute allocations made by the employer to the employee who, by virtue of the organizational power available to the employer, must travel outside his or her workplace to carry out his or her work; The deductible expenses for the maintenance of the businessman or professional referred to in article 30.2.5 of the Tax Law are expenses incurred by the businessman or professional himself, in the development of his economic activity.

  These limits are:

  (*) It must be a municipality other than the taxpayer's usual place of work and the one that constitutes his residence..(Back)
  Information	Spain	Foreign
  Spending the night 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

  Any excess over these amounts may not be deducted.

Note: The taxpayer must retain, for the maximum limitation period, providing when requested for this purpose, the supporting documents for the expenses to verify compliance with the requirements demanded by the law.