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V1807-18 21 June 2018 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · rendimientos del trabajo

Social Security contributions are deductible in the period they become due

A taxpayer inquired whether they could deduct in 2017 the payment of overdue Social Security contributions relating to previous periods. The Directorate General of Taxes (DGT) ruled that the deduction must be attributed to the tax year in which the contributions become due according to the administrative resolution.

The question raised

Impact of the aforementioned income on the 2017 Personal Income Tax settlement.

The DGT's ruling

Social Security contribution expenses are attributed to the tax period in which they become due to the recipient. Enforceability is determined by the administrative resolution of the INSS which establishes the settlement of the quotas. In this case, as the resolution occurred in 2017, the quotas must be attributed to said fiscal year.

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