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V3392-19 ·11 December 2019 ·consulta-vinculante Medium impact
Tax

Professional service fees are recognised based on either the accrual or the cash basis

A taxpayer has requested clarification on when a €15,000 sum received via judicial ruling for professional fees must be declared for Personal Income Tax (IRPF) purposes. The Directorate General of Taxes (DGT) responds that the timing of recognition depends on whether the accrual basis or the cash basis is applied.

In 5 key points

How it affects those involved

This ruling clarifies the temporal recognition of professional income, specifically regarding judicial awards, ensuring taxpayers apply the correct accounting method (accrual vs. cash basis) for tax reporting.

Lifecycle

2019-12-11PublishedPublished 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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