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V1522-24 20 June 2024 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · prestación por desempleo

Lump-sum unemployment benefits must be declared in the period the exemption is lost

A taxpayer inquired about the timing and method for declaring a lump-sum unemployment benefit after losing the right to an exemption due to the cessation of self-employed activity. The DGT indicates that it must be included in the tax return for the financial year in which the non-compliance occurs.

The question raised

Given that this will entail the loss of the right to the exemption provided for in Article 7.n) of the Personal Income Tax Law, it is questioned which is the tax period in which the aforementioned benefit must be declared and its classification for Tax purposes.

The DGT's ruling

Upon the loss of the right to the exemption due to the failure to maintain self-employed activity during the five-year period, the taxpayer must include the amount in the tax return for the tax period in which the non-compliance occurs. Said benefit is classified as income from employment. The amount must be included together with late payment interest.

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