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V1154-19 ·28 May 2019 ·consulta-vinculante Medium impact
Tax

No recovery of income tax withholdings on interest if already deducted from compensation

A taxpayer inquired about recovering income tax (IRPF) withholdings applied to interest from subordinated obligations following a court-ordered compensation. The Directorate General for Taxes (DGT) ruled that since the court judgment already reduced the compensation amount by those interest amounts, no additional adjustments can be made regarding the withholdings.

In 6 key points

How it affects those involved

This ruling clarifies that taxpayers cannot claim a refund for withholdings on interest if the principal compensation amount has already been adjusted downwards to account for said interest, preventing double benefits.

Lifecycle

2019-05-28PublishedPublished in the BOE
Official text Based on BOE data (boe.es). Information, not advice.

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This analysis is informational only and does not constitute legal advice or create a client-adviser relationship. BM Consulting.
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