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A lawyer asks how to temporally recognise fees for a judicial administration that will be collected in three years. The DGT rules that, as the cash basis of accounting has not been chosen, the Corporate Tax rules for instalment transactions apply.
This clarifies the tax treatment for professionals receiving payments over multiple periods, confirming that without opting for the cash basis, the accrual method for instalment sales must be followed.
The tax team reviews your specific situation.
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