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V3522-20 10 December 2020 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · hecho imponible

Re-depositing previously withdrawn cash does not constitute income for Personal Income Tax (IRPF)

A query was raised regarding whether re-depositing cash that had been previously withdrawn from a bank account has tax implications. The Directorate General for Taxes (DGT) responds that the transaction has no impact on Personal Income Tax (IRPF), but warns of the necessity to prove the origin of the funds.

The question raised

The tax treatment, under Personal Income Tax (IRPF), of the re-deposit of cash into a bank account is consulted. Accreditation of the origin of the deposited money.

The DGT's ruling

The withdrawal and subsequent deposit of cash has no significance for Personal Income Tax (IRPF), as the taxable event is the acquisition of income. However, the taxpayer must be able to justify the origin of the re-deposited money, in accordance with the burden of proof established in the General Tax Law.

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