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V3132-16 6 July 2016 · SG de Tributación de las Operaciones Financieras Criterion in force
IRPF · rendimientos del capital mobiliario

Life insurance benefits must be attributed to the period in which they become due, not when they are actually paid

A taxpayer inquired which tax year should be used to declare an additional amount received in 2015 for a life insurance policy, following a dispute regarding the benefit amount for 2014. The Directorate General of Taxes (DGT) ruled that the amount must be attributed to the 2014 tax year.

The question raised

Tax period to which the insurance benefit paid in the year 2015 should be attributed. Completion of the income in the Personal Income Tax return.

The DGT's ruling

Income from movable capital derived from life insurance is attributed to the period in which the benefit becomes due to the beneficiary. Enforceability is assessed according to insurance regulations, following the notification of the claim and the occurrence of the contingency. As the disagreement regarding the amount has not been subject to judicial proceedings, the additional amount must be attributed to the fiscal year in which the right was recognized, in this case, 2014.

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