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V0805-20 8 April 2020 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · imputación temporal

Wage differences and late payment interest from court rulings are attributed to the year the judgment becomes final

A civil servant received back pay and late payment interest following a court ruling. The DGT has ruled that this income must be attributed to the tax year in which the judgment became final, allowing for a supplementary self-assessment without penalties.

The question raised

Temporal attribution of income received and application of the reduction under Article 18.2 of Law 35/2006.

The DGT's ruling

Remuneration differences recognized by judicial decision are attributed to the tax period in which the resolution becomes final. If the generation period exceeds two years, the 30% reduction may be applied if they are attributed to a single period. Default interest is considered capital gains and forms part of the savings tax base. The attribution of these interests is also carried out in the fiscal year in which the judgment becomes final.

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