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V0626-17 9 March 2017 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · nulidad de contrato

Refunds due to contract nullity must be declared in the original tax years and interest is treated as capital gains

The taxpayer asks how to tax amounts received following a court ruling that declares a financial swap contract null and void. The Tax Agency responds that refunds must be regularised in the tax years in which they were paid, and any interest received is taxed as capital gains.

The question raised

Taxation in Personal Income Tax (IRPF) of the amounts received: reimbursements and interest.

The DGT's ruling

The nullity of a contract implies restoring things to their initial state; therefore, reimbursements must be taxed in the fiscal years in which they were originally included through supplementary self-assessments or rectifications. The interest awarded by the judgment, having an indemnification nature, is taxed as capital gains in the period in which the judgment becomes final. These gains are integrated into the savings tax base.

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