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V0122-19 18 January 2019 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · imputación temporal

Social Security benefits received via court ruling are attributed to the year the judgment becomes final

A taxpayer received a lump sum payment of partial retirement benefits for previous years in 2018 following a court ruling. The DGT has determined that such income must be taxed in the financial year in which the judicial resolution becomes final, and that reductions for irregularity or for receipt as capital are not applicable.

The question raised

Taxation of the amount received in 2018.

The DGT's ruling

Income from employment, such as Social Security benefits, is attributed to the tax period in which it becomes due. If the amount is pending judicial resolution, it shall be attributed to the period in which the judgment becomes final. The 30% reduction for irregular income (Art. 18.2 LIRPF) is not applicable as these are Social Security benefits. Similarly, the reduction for receipt in the form of capital (Art. 18.3 LIRPF) does not apply, as this constitutes an accumulation of monthly payments and not a lump-sum payment.

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