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V2973-17 16 November 2017 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · devolución de ingresos indebidos

Refund of self-employed contributions is taxed in the year they were deducted, not the year received

A taxpayer received a refund of self-employed contributions and late-payment interest following a court ruling that recognised an employment relationship. The Tax Agency clarifies that the refund of contributions affects the tax years in which they were declared as expenses, while late-payment interest is taxed as a capital gain within the savings tax base.

The question raised

Taxation in Personal Income Tax (IRPF) of the refund of undue payments and the interest recognized in their favor in the resolution.

The DGT's ruling

The refund of undue payments regarding self-employed contributions does not affect the tax year in which it is received, but rather the tax years in which they were included as expenses. The late payment interest received due to the refund of undue payments is compensatory in nature and must be taxed as a capital gain. As it does not derive from a transfer of assets, it is quantified by the amount received and is integrated into the savings tax base.

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