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V1271-22 6 June 2022 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · imputación temporal

Arrears for disability benefits are attributed to the tax year in which the judgment becomes final

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.

The question raised

Impact of the aforementioned on the obligation to file tax returns.

The DGT's ruling

Employment income is attributed to the tax period in which it becomes due. However, when the amount or the right to the income is pending judicial resolution, the amounts are attributed to the period in which the judgment becomes final. Therefore, arrears in disability benefits are attributed to the year in which the judgment becomes final. The refund of unduly received unemployment benefits affects the tax returns of the fiscal years in which they were declared as income.

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