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V0822-20 13 April 2020 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · imputación temporal

Income and withholdings are recognised based on the taxpayer's chosen accrual or cash basis

A self-employed individual asks when invoices issued in 2018 but paid in 2019 should be declared, and when withholding tax should be applied. The DGT rules that recognition depends on whether the taxpayer uses the accrual or cash accounting method, and that withholding is applied at the time of payment.

The question raised

Question raised: Temporal imputation of the aforementioned invoices and the withholdings made. Timing of the withholding on the same.

The DGT's ruling

The temporal imputation of income depends on the criterion used by the taxpayer: if the accrual basis is applied, the income pertains to 2018; if the cash basis is applied, it pertains to 2019. The withholdings incurred must be imputed in the same period as the income. The obligation to withhold arises at the moment the income is satisfied or credited.

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