Skip to main content

Informative notes

Brief explanatory information on the filing of certain information.

Skip information index

Tax Form 190.Special features of the campaign

Information on how to report Temporary Redundancy Proceedings (ERTE) and extraordinary benefits for termination of activity received by the self-employed on form 190.

Nature of the income

These are extraordinary measures to deal with the economic and social impact of COVID-19 on unemployment protection.

According to Article 17.1.b) of the Income Tax Law, unemployment benefits are qualified as income from work, and subject to tax.

As is the case with the “ordinary” benefit for the cessation of activity of the self-employed regulated in Articles 327 et seq.LGSS, the extraordinary benefit for cessation of activity is a benefit from the unemployment protection system.

NONE of these benefits are exempt from personal income tax.

How are these benefits declared on form 190

Benefits paid must be declared on Form 190, with code C (unemployment).

ERTE repayments (arising from undue ERTE payments in 2020):

  1. UNDUE PAYMENTS FOR 2020, refunded in 2020:

    These cases should have been reported in 2020, including the amount paid minus the amount refunded in the recipient's record of the 2020 Form 190.

    Therefore, it should not be declared on form 190 for financial year 2021.

  2. UNDUE PAYMENTS FOR 2020 to be repaid in 2021:

    Form 190 – 2020the satisfied benefit was reported in 2020.

    Form 190 – 2021shall be reported by the payer of the benefits:

    • A record, if any, of any benefits the taxpayer may have received in 2021.

    • Refunds:A separate record of payee, with code "C", which shall contain:

      • "Cash payments not derived from incapacity for work" field:only the GROSS amount to be refunded is entered with a negative sign.

      • Accrual year":the year in which the undue amounts were paid, 2020.

      • No "Deductible expenses" and no withholdings.