New Royal Decree-Law Exempts Unemployment Benefit Recipients from Filing Tax Returns

In a significant policy shift, the Government has announced the removal of the requirement for unemployment benefit recipients to file their income tax returns. This change was outlined in the Royal Decree-Law of economic measures approved by the Council of Ministers on Tuesday and published in the Official State Gazette (BOE) the following day. Starting from the 2025 tax year, this new measure reverses a previous obligation that was part of the 2024 reform on unemployment subsidies. The recent decree modifies the General Law on Social Security, stating that this requirement for individuals on unemployment benefits has become merely a formal obligation. The Government argues that requiring unemployment benefit recipients to file tax returns exceeds the original intent of the regulation, which was primarily designed to supply additional information to agencies managing unemployment benefits. Additionally, officials pointed out that a similar tax filing requirement had been enacted for the non-contributory minimum vital income (IMV) benefit to align both regulations. However, the differing nature and purposes of the two benefits have led authorities to recommend the exemption of unemployment beneficiaries from this obligation. Implementing this requirement also posed an unnecessary increase in administrative burdens for individuals already facing hardships. The Government clarified that the necessary information to verify the truthful declarations of those applying for unemployment benefits can be obtained by the State Public Employment Service (SEPE) through checks into the beneficiaries' tax data, ensuring that oversight remains intact without placing an additional load on recipients. This decision reflects a growing acknowledgment of the complexities faced by those relying on unemployment benefits and aims to streamline the process, thereby alleviating some of the bureaucratic pressures on individuals as they navigate their financial challenges. Related Sources: • Source 1 • Source 2