How Will it Be Taxed?

SPN HaciendaThe government aid for autónomos during the Lock Down is scheduled to end at the end of this month but voices are calling for an extension.

If self-employed workers could show that they had had to shut down or had lost 75% of their income, then they received around 660 euros a month from their mutuas. On the 30th of June the last payment will be deposited into their bank accounts.

However, the Asociación de Trabajadores Autónomos (ATA) and the Ministerio de Seguridad Social are working on a deal where it could be extended for at least another two months.

Whilst autónomos are biting their nails to find out whether it will be extended another two months, at the back of everybody’s mind is how will this affect their annual tax declaration.

The Real Decreto-ley 8/2020 that brought these payment into being doesn’t actually deal with this question. Should it be included in the Declaración de la Renta (IRPF) or not?

Well, the AEAT (Spanish Tax Agency) says that it is too early to know; i.e., what implications these payments will have but… the payments will compute as rendimiento del trabajo (work-related earnings) unless the Dirección General de Tributos finally decides otherwise.

Under the present tax laws such payments would be treated the same as unemployment benefit, for example, therefore it is taxable. That is, unless the Government brings out a new law or amends the existing one

In other words, as things stand, these payments will compute as taxable earnings to be declared as part of your 2020 tax declaration.

(News: Spain)

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