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V1898-18 27 June 2018 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · rendimientos del trabajo

Arrears in Social Security contributions are deductible in the tax year they become due

A taxpayer inquired whether a payment of €4,602.36 for overdue Social Security contributions (covering the period from 1984 to 2014) should be declared in 2017. The Directorate General of Taxes (DGT) ruled that these expenses are attributed to the period in which the administrative resolution determines they are due.

The question raised

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

The DGT's ruling

Social Security contribution expenses are considered deductible employment income pursuant to Article 19.2.a) of Law 35/2006. Their temporal allocation follows the general rule of Article 14.1.a), which establishes that expenses are allocated to the tax period in which they become due. In this case, the due date is determined by the administrative resolution of the INSS, which in this instance occurred in 2017.

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