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V0517-14 25 February 2014 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · imputación temporal

Employment income received via court ruling is attributed to the year the judgment becomes final

A taxpayer received payments in 2013 for incorrectly applied supplements between 2004 and 2007 following a court ruling. The DGT has ruled that these amounts must be declared in the tax year in which the judgment becomes final.

The question raised

Temporal imputation of amounts received by judicial sentence.

The DGT's ruling

Employment income that was not paid due to a pending judicial resolution shall be imputed to the tax period in which the resolution becomes final. In this case, the amounts corresponding to 2004-2007 must be imputed to 2013. Likewise, the 40% reduction applies as the generation period exceeds two years and they are not periodic income. Since the collection coincides with the year of imputation, they are not considered arrears for withholding purposes.

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