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A professional enquired whether payments received under a court ruling relating to previous years should be declared in 2021, and whether they could apply the reduction for income with a generation period exceeding two years. The DGT ruled that the full amount must be recognised in 2021 and that the reduction depends on whether such income is considered regular within their professional activity.
This ruling clarifies the timing of tax recognition for credit impairment reversals and the criteria for applying irregularity reductions, potentially increasing the immediate tax burden for professionals receiving lump-sum payments.
The tax team reviews your specific situation.
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