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V1537-24 ·24 June 2024 ·consulta-vinculante Medium impact
Tax

Social Security contributions are recognised on an accrual basis and penalties or surcharges are non-deductible

A taxpayer has enquired whether an increase in their Social Security debt for 2023 constitutes a deductible expense. The DGT has ruled that contributions must be recognised when they accrue and that any surcharges or penalties are not deductible.

In 6 key points

How it affects those involved

This ruling clarifies the timing for recognising Social Security liabilities and confirms that punitive charges cannot be used to reduce taxable income.

Lifecycle

2024-06-24PublishedPublished in the BOE
Official text Based on BOE data (boe.es). Information, not advice.

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This analysis is informational only and does not constitute legal advice or create a client-adviser relationship. BM Consulting.
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