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A query was raised regarding whether employees of a semi-private school should declare income in 2021 that was earned in 2020 but received in March 2021. The Directorate General of Taxes (DGT) ruled that such income must be attributed to the 2020 tax year, as that is when it became due.
This ruling clarifies the timing of income recognition for tax purposes, ensuring that income is reported in the year it becomes legally due rather than when it is physically received.
The tax team reviews your specific situation.
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