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A taxpayer received wage differences in 2018 relating to 2015 following a judicial settlement. The DGT has ruled that such income must be attributed to the tax year in which the judicial ruling becomes final, rather than the year in which the payments were actually received.
This ruling provides legal certainty regarding the timing of tax obligations for income arising from legal settlements, ensuring that taxpayers report such earnings in the period when the right to receive them is legally established and final.
The tax team reviews your specific situation.
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