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V1371-14 21 May 2014 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · rendimiento del trabajo

Surcharge for lack of safety measures in workplace accidents taxed as employment income

A query was raised regarding whether the 30% to 50% surcharge on Social Security benefits following a workplace accident should be subject to Personal Income Tax (IRPF). The Directorate General for Taxes (DGT) has ruled that it constitutes employment income and clarifies the conditions under which it must be declared.

The question raised

The tax treatment that must be applied to the indicated surcharge for the purposes of Personal Income Tax.

The DGT's ruling

The surcharge on economic benefits for occupational accidents or professional diseases is considered personal labor income subject to Personal Income Tax (IRPF). If the right to receive it depends on a judicial resolution, the amounts are imputed to the tax period in which said resolution becomes final. Regarding reductions for the attainment of labor income, those provided for in Article 20 of the Personal Income Tax Law shall apply.

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