Back to index
V2796-23 16 October 2023 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · rendimientos del trabajo

Repayment of amounts unduly received in previous years does not affect the Income Tax return of the year of repayment

A company enquired whether a worker's partial repayment of a holiday allowance paid in error in 2022 should be reflected in the 2023 tax return. The DGT ruled that the tax event occurs in the financial year in which the income was received (2022) rather than in the year of repayment.

The question raised

Reflection of the above in Form 190.

The DGT's ruling

The refund of amounts unduly received has no impact on the Personal Income Tax (IRPF) return for the fiscal year in which the reimbursement is made. As these are non-enforceable incomes, their impact on the tax assessment corresponds to the tax period in which they were declared as income. The reimbursement does not affect the determination of the withholdings applicable to the employment income paid in the year of the reimbursement. In Form 190, the reimbursed amounts must be included under the same code and subcode with which the undue amounts were originally included.

Book your free first meeting