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V2262-20 2 July 2020 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · rendimientos del trabajo

Unduly received and repaid unemployment benefits may be excluded from Income Tax returns

A taxpayer inquired about the tax treatment of the repayment of unemployment benefits received erroneously. The Directorate General for Taxes (DGT) ruled that, as these do not constitute real income, they must be excluded from the tax returns in which they were originally included.

The question raised

Taxation in Personal Income Tax (IRPF) regarding the refund of unemployment benefits.

The DGT's ruling

Unemployment benefits unduly received do not constitute income, and therefore the taxable event does not occur. The amounts received at the time must be excluded from the tax return in which they were included. To regularize the situation, the taxpayer may request the rectification of the self-assessments pursuant to Article 120.3 of the General Tax Law.

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