Loss exemption benefit unemployment autonomy society: Do you miss the exemption from the unemployment benefit in a single payment if you did not work as a self-employed person in society?

Royal Decree 1044/1985, of June 19, regulates the possibility of requesting the payment of the unemployment benefit in the single payment method, in order to promote entrepreneurship, either as a freelance worker or through participation in a society.

In order to favor this measure, in parallel with article 7.n) of the Personal Income Tax Law, the exemption from these unemployment benefits recognized by the respective management entity was established when they are received in the single payment, provided that the amounts received are used for the purposes and in the cases provided for in the aforementioned rule.

However, this exemption is conditioned on the maintenance of the action or participation for a period of five years, in the event that the taxpayer has been integrated into labor companies or cooperatives of associated work or has made a contribution to the share capital of a mercantile entity, or the maintenance, during the same term, of the activity, in the case of the self-employed worker.

Loss exemption benefit unemployment autonomy society

Therefore, if before the complete expiration of the referred period of five years there is a change from carrying out economic or professional activity as a self-employed worker to constitute a company, the exemption in relation to the amounts received in concept of unemployment benefit in the single payment method, having to proceed to its integration and regularization, with the tax blow that it can entail. This is despite the fact that the corporate purpose of the entity was the development of the same economic activity that had been exercising as a self-employed worker.

To avoid the loss of the exemption, five years must have elapsed since the start date of the activity (indicated in form 036/037 of discharge) in which the amounts were affected. received by the single payment of the unemployment benefit. Here you can see which alternative is more tax friendly, autonomous or society.

Consequently, if five years have not passed, the regularization of the tax situation, due to the loss of the right to exemption from the unemployment benefit in the one-time payment method, must be done in the self-assessment of the Income tax corresponding to the tax period in which the breach occurs, including in the self-assessment the amounts received to which the exemption has been applicable, in accordance with article 122.2 of the General Tax Law, in the absence of the regulations of the tax no specific regulation with respect to this case.

On the other hand:

The exemption will not be lost if within five years the heading of the activity is modified, provided there is no interruption in the development of the economic activity (understood in its broadest sense, no the activity developed is the same).

The exemption is also not lost if the transformation of the legal form of the company or the merger by absorption occurs as long as the holding is held.