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V0779-22 11 April 2022 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · imputación temporal

Income from work awarded by court ruling is attributed to the tax year in which the judgment becomes final

A taxpayer inquired which tax year should be used to declare funds received via a court ruling following an unlawful dismissal. The DGT ruled that the income must be attributed to the year in which the judgment became final.

The question raised

Temporal attribution of the aforementioned income for Personal Income Tax (IRPF) purposes.

The DGT's ruling

Income from employment, the amount or right to receipt of which is pending judicial resolution, shall be attributed to the tax period in which the resolution becomes final. In this case, as the judgment became final in 2021, the income must be declared in said tax year. A supplementary tax return is not necessary if payment is received before the opening of the filing period for the corresponding tax year.

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