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A query was made regarding the timing of recognition and taxation of the refund of the IVMDH (Tax on the Transfer of Real Estate) and its interest. The Directorate General for Taxes (DGT) ruled that the refund must be taxed as income in the period in which the right to receive it is recognised, and that late payment interest is treated according to its specific nature.
This ruling clarifies the tax timing for taxpayers receiving refunds of incorrectly paid taxes, ensuring that the income is recorded when the right to the refund is established.
The tax team reviews your specific situation.
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