The implications of the ERTEs in the Corporate Income Tax, in addition to the existing ones in the labor field and in the IRPF of the workers.
How affects the ERTEs in the Corporate Income Tax
Firstly, there is an obligation to withhold tax on the income paid to employees during the year.
Many companies that are processing ERTEs can agree with the workers. Or voluntarily decide a salary supplement to the benefit. The objective is that the worker does not lose purchasing power.
The beneficiaries of this supplement will have to compute it in their IRPF as employment income, and the company could subject it to the corresponding withholding. Therefore, the company could regularize the rate applicable to the withholdings considering the annual salary, including the supplement. But not the payment made by the SEPE.
With regard to social security contributions, the supplement is not subject to social security contributions. It is considered an indemnity for suspension of contract, without salary nature.
Secondly, regarding deductibility.
In accordance with the applicable regulations, the deductibility of an expense requires, among other requirements, the corresponding justification. This implies that the companies that have opted to satisfy these complements to the ERTE will have to justify the personnel expenses, in the absence of such personnel.
The AEAT has already confirmed this criterion in question 10 of the section dedicated to Corporate Income Tax of the aforementioned question and answer document. Specifically, to the question on what are the deductible personnel expenses in relation to an ERTE, it answers that:
“In accordance with the accrual principle, all personnel expenses accrued may be deducted provided that they meet the legally established conditions in terms of accounting registration, allocation on an accrual basis and justification”.
Consequently, in view of the possibility of the company paying a non-compulsory supplement, it is highly recommended that the agreements adopted for the payment of these supplements be properly documented and justified.