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A taxpayer inquired whether amounts received from FOGASA in 2019, corresponding to previous years that have already expired, must be declared. The DGT ruled that such income must be attributed to the period in which the judicial resolution determining the right to receive them becomes final.
This ruling clarifies the timing for tax reporting on legal settlements, ensuring that income is taxed in the year the right to receive it is legally established and final, rather than when the underlying work was performed.
The tax team reviews your specific situation.
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