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V0228-21 10 February 2021 · SG de Tributación de las Operaciones Financieras Criterion in force
IRPF · retribución en especie

Collective insurance premium imputation must be adjusted based on each employee's coverage period

A query was raised regarding whether, in the event of employee joiners or leavers in a collective life insurance scheme without premium regularisation, a benefit-in-kind must be imputed or the previously imputed amount regularised. The DGT ruled that the company must perform a new distribution of the total premium among all employees based on their period of insurance and adjust the initial imputation accordingly.

The question raised

In cases of employee registrations and terminations occurring during the year that do not involve a regularization of the annual premium, whether there should be an imputation of remuneration in kind (in the case of registration) and a regularization of the previously imputed remuneration (in the case of termination).

The DGT's ruling

The premium for risk insurance must be subject to mandatory tax imputation as income in kind from employment. At the end of the year, the entity must redistribute the total annual premium among all employees who have been insured during the period, based on each individual's coverage time. This implies making upward or downward adjustments to the initial imputation and proceeding with the imputation of the premium for employees who were registered during the year.

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