Skip to content
Back to index
V0417-22 3 March 2022 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · rendimientos del trabajo

Refund of tax withholdings possible for undue disability benefits

A taxpayer received a partial permanent disability indemnity subject to Income Tax (IRPF) withholdings, but was subsequently recognised as having a total disability, requiring the return of the initial benefit. The Directorate General for Taxes (DGT) clarifies whether it is possible to recover the withholdings applied to that undue benefit.

The question raised

Regularization of the tax situation. Request for a refund of the withholdings applied to the compensation for partial permanent disability.

The DGT's ruling

Benefits for permanent disability are income from employment without exemption. If a benefit is undue and not enforceable, it has no impact on the Personal Income Tax (IRPF) for the year in which it was received. To recover the withholdings sustained, the appropriate procedure is the rectification of self-assessments relating to withholdings. The right to a refund belongs to the person who sustained the withholding, provided it has not been previously deducted in a self-assessment.

Book your free first meeting