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V1313-24 5 June 2024 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · incapacidad temporal

Temporary disability benefits are taxable in the period they become due

A taxpayer received a payment from a mutual insurance company in 2024 covering periods of temporary disability spanning 2022, 2023, and 2024. The Directorate General for Taxes (DGT) has ruled that these benefits constitute employment income and must be attributed to the years in which they became due, allowing for supplementary self-assessments without penalties.

The question raised

Taxation of the amount received in the Personal Income Tax return.

The DGT's ruling

Economic benefits for temporary disability are income from employment subject to Personal Income Tax (IRPF). The temporal imputation must be carried out in the period in which the income is due to the recipient. If received in a period different from when it was due due to circumstances not attributable to the taxpayer, it must be imputed to the periods of due date through supplementary tax returns without penalties or late payment interest.

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