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V0722-18 16 March 2018 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · rendimientos del trabajo

Judicially recognised bonuses taxed as income from work

The consultant asks how to tax bonuses from 2013 and 2014 and their interest following a 2017 judicial ruling. Hacienda states that the bonuses are taxable as income from work in the year of the ruling and the interest is treated as capital gains.

The question raised

Taxation under Personal Income Tax of the aforementioned amounts.

The DGT's ruling

Performance bonuses are considered income from employment and, as a judicial resolution was pending, they are attributed to the tax period in which the judgment becomes final. Interest received due to late payment is compensatory in nature and must be taxed as capital gains in the fiscal year in which the change in assets occurs, i.e., when they are recognized and quantified.

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