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V1537-24 24 June 2024 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · rendimiento neto

Social Security contributions are recognised on an accrual basis and penalties or surcharges are non-deductible

A taxpayer has enquired whether an increase in their Social Security debt for 2023 constitutes a deductible expense. The DGT has ruled that contributions must be recognised when they accrue and that any surcharges or penalties are not deductible.

The question raised

"I have debts with Social Security from several years ago and these debts increase year by year. Can the increase in debt corresponding to the year 2023 be considered a deductible expense?"

The DGT's ruling

Social Security contributions are imputed to the tax period in which they accrue, regardless of when they are paid. Penalties, enforcement period surcharges, or surcharges for late filing are not tax-deductible. The interest on these debts is deductible as financial expenses, subject to the limit of 30% of the operating profit.

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