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V2214-24 15 October 2024 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · rendimientos íntegros

Employment income must be declared at its gross amount accrued

A remote worker for an Italian company asks whether they should declare the gross amounts of their payslip or the net amounts received. The DGT rules that income must be calculated based on the full gross amount accrued.

The question raised

To determine whether, when filing the income tax return in Spain, the employment income to be declared from said company is the net amount (actually received) or the gross amounts appearing on the payslips.

The DGT's ruling

Gross employment income comprises all monetary or in-kind considerations derived from the employment relationship. These must be calculated based on the gross amount accrued. To obtain the net income, deductible expenses permitted by law, such as Social Security contributions, must be subtracted from the gross income.

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