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V1004-24 10 May 2024 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · intereses indemnizatorios

Interest for unpaid wages is taxed as a capital gain within the general tax base

A taxpayer inquired about the taxation of interest received following a lawsuit for unpaid wages. The DGT ruled that, as these are compensatory interest for late payment, they must be taxed as a capital gain within the general tax base.

The question raised

Taxation of interest under Personal Income Tax (IRPF).

The DGT's ruling

Interest for delay in the payment of wages is compensatory in nature to redress damages. Therefore, it does not constitute income from movable capital, but rather capital gains. Following the doctrine of the Supreme Court, these interests must be included in the general tax base and not in the savings tax base.

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