Income from work in kind: RETA fees
The DGT establishes that the quotas of the Special Social Security Scheme for Self-Employed or Self-Employed Workers (RETA) paid by the company to the administrator are considered as income from work in kind and are deductible in the IRPF.
A company that pays the autonomous insurance contributions (RETA) of its administrator, declares its amount as compensation in kind from the administrator. In case of doubts that arise if the administrator can deduct the amount of these installments in his income tax return, he will consult the DGT.
The DGT states that income in kind is the use, consumption or obtaining, for particular purposes, of goods, rights or services for free or for a price below the normal market price, even if it does not imply a real expense for the person who grants them.
When the payer of the income gives the taxpayer cash amounts for it to acquire the goods, rights or services, the rent is considered cash.
In addition, the RETA shares paid by the mercantile company to its administrator are considered to be remuneration for work in kind, which implies the obligation to make an income on account, income that is added to the value of the income in kind, except that the amount has been passed on to the administrator.
On the other hand, if the payment is made by handing over the money to the administrator, its rating is that of monetary remuneration, which is why it is subject to withholding, which is deducted from the remuneration.
Finally, it states that the RETA fees are considered deductible expenses for the determination of net income from work.