Pension arrears: DGT clarifies imputation and statute of limitations
The Directorate General of Taxes (DGT) has issued a relevant ruling for individuals receiving accumulated payments for public pensions. The central issue was to determine whether receiving these arrears in the current tax year led to the statute of limitations for the obligation to declare income corresponding to previous years.
What the DGT has ruled
The inquiry addressed the possible statute of limitations for the 2017, 2018, and 2019 tax years following the receipt of pension arrears in 2024. The binding body has established that pension arrears must be imputed to the tax periods in which they were due. To achieve this, the taxpayer must file a supplementary tax return for those years.
In accordance with Article 14.2.b) of Law 35/2006 on Personal Income Tax (IRPF), the supplementary return must be filed within the period between the receipt of the income and the end of the immediately following tax filing period. In this specific case, the DGT has ruled that, since this specific period has not elapsed, the statute of limitations for the years prior to 2020 has not occurred.
What this means for you
If you are a pension beneficiary and receive a payment that compensates for past periods, you cannot declare the total amount in the current tax year. The regulations require that the amounts be broken down and the years to which they belong be regularized. This implies that the administration considers the obligation to declare that income still in effect for the affected years, provided that the aforementioned deadline for filing the supplementary return is met.
What you should do
Upon receiving pension arrears payments, it is necessary to precisely identify which tax periods each amount corresponds to. Regularization must be carried out by filing supplementary tax returns for the corresponding years, following the deadlines established by current regulations. Since every financial situation is unique, it is necessary to assess each case to ensure compliance with tax obligations.
Frequently asked questions
- Can I declare the entire pension arrears in the year I receive them?
- No, the amounts must be imputed to the tax periods in which they were due through supplementary tax returns.
- Have the previous tax years expired upon receiving the payment?
- No, according to the DGT, as long as the specific period for filing the supplementary return has not elapsed, the statute of limitations does not occur.