Back to index
V2617-23 27 September 2023 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · rendimiento del trabajo

Social Security contributions from court-ordered compensation are deductible in the year the judgment becomes final

A worker inquired whether they could deduct in 2023 the Social Security contributions related to a supplementary compensation payment that pertained to 2022. The DGT ruled that, as the compensation became an enforceable income in 2023 due to a final judgment, the associated contribution expense must also be attributed to that same tax year.

The question raised

"Whether the employee's share borne by the worker due to the aforementioned contribution may be imputed as a deductible expense (Article 19.2 of the Personal Income Tax Law) in the 2023 fiscal year, despite the fact that the actual contribution is made in the 2022 fiscal year."

The DGT's ruling

Employment income is imputed to the period in which it becomes due. When the amount depends on a judicial ruling, the amounts are imputed to the period in which the judgment becomes final. Therefore, the Social Security contributions deducted from a supplementary indemnity must be imputed to the same period in which said income is imputed.

Book your free first meeting