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V0689-17 16 March 2017 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · imputación temporal

Wage differences resulting from court rulings are attributed to the tax year in which the judgment becomes final

A taxpayer has enquired as to when wage differences and late payment interest awarded by a court ruling must be declared. The DGT has ruled that wages are attributed to the year in which the judgment becomes final, while late payment interest is taxed as capital gains in that same tax year.

The question raised

Temporal attribution.

The DGT's ruling

Remuneration differences pending judicial resolution are attributed to the tax period in which the judgment becomes final. Late payment interest under Article 29.3 of the Workers' Statute is compensatory in nature and must be taxed as capital gains. The change in assets resulting from these interests occurs with the judgment, which is also attributed to the fiscal year in which it becomes final. Said capital gains shall be included in the savings tax base.

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