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A taxpayer inquired about how to declare arrears from a permanent disability benefit that offset unemployment benefits previously received. The Directorate General for Taxes (DGT) ruled that these amounts must be attributed to the tax year in which the judgment establishing the right to the benefit becomes final.
This ruling clarifies the timing for tax reporting disability benefit arrears, ensuring they are recorded in the year the legal right is finalised rather than when the payments are received.
The tax team reviews your specific situation.
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