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V0645-16 16 February 2016 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · rendimientos de actividades económicas

Refund of a tax previously deducted as an expense must be taxed as income from economic activity

A taxpayer who no longer carries out economic activity receives a refund of a tax (the health levy) previously paid as an expense. The DGT rules that such a refund must be declared as income from economic activity in the tax year in which the refund is granted.

The question raised

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

The DGT's ruling

The refund of amounts corresponding to a tax that were incurred as expenses in an economic activity is considered income from economic activities. As no activity is currently being carried out, the direct estimation method applies. Late payment interest on said refund is taxed as a capital gain, being integrated into the savings tax base, unless it compensates for a period not exceeding one year, in which case it is taxed in the general tax base.

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