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V1532-24 ·21 June 2024 ·consulta-vinculante Medium impact
Tax

Damages for breach of contract taxed as employment income and interest as capital gains

A taxpayer received compensation for damages resulting from a failure to enter into a contract following a court ruling. The DGT has determined that the amount corresponding to unpaid wages constitutes employment income, while the late payment interest is classified as a capital gain.

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2024-06-21PublishedPublished 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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