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V0304-16 26 January 2016 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · rendimientos de actividades económicas

Tax refunds must be recognised as business income in the tax year the right to them is established

A haulier has requested clarification on how to declare a refund of the IVMDH (Motor Vehicle Tax) and the late payment interest received. The Directorate-General for Taxes (DGT) has ruled that the refund constitutes business income in the year it is granted, while the interest is taxed according to its specific nature.

The question raised

Method of declaring the indicated refund in the Personal Income Tax (IRPF).

The DGT's ruling

The refund of the IVMDH, if accounted for as an expense, must be imputed as income from economic activity in the tax year in which the right to the refund is recognized. Remuneratory late-payment interest is taxed as income from movable capital (or from the activity if applicable), whereas compensatory interest is taxed as capital gains. The latter are included in the savings tax base, unless they compensate for a period not exceeding one year between 2013 and 2015, in which case they are included in the general tax base.

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