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V2599-18 25 September 2018 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · imputación temporal

Unpaid wages must be declared via supplementary tax return upon receipt

A worker inquired whether wages unpaid by a company should be declared in 2017. The Directorate General of Taxes (DGT) ruled that only amounts actually received must be declared. Once the owed amounts are collected (e.g., via FOGASA), a supplementary tax return for the relevant tax year must be filed.

The question raised

In relation to the Personal Income Tax return for the 2017 tax period: whether only the amounts received (from January to July) must be reported or all amounts (including those not collected) and whether the Social Security expenses and withholdings to be included are only those corresponding to the salaries received in the January-July period or if the totality up to December 11 must be included.

The DGT's ruling

Employment income is imputed to the period in which it becomes due. If, due to causes not attributable to the taxpayer, it is received in a different period, a supplementary tax return for the period of due date must be filed without penalty or interest. Such return shall include the gross income and the withholdings actually applied. Social Security contribution expenses are imputed to the period of the income from which they have been effectively deducted.

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