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V1167-18 8 May 2018 · SG de Tributación de las Operaciones Financieras Criterion in force
IRPF · rendimientos del capital mobiliario

Deposits' accumulated interest taxable on recognition in account

A taxpayer asks when interest from a New Zealand deposit, reinvested quarterly, must be declared and whether Form 720 must be resubmitted. The tax authority states that interest is taxable upon recognition in the account and that Form 720 is only required if the balance increases by more than 20,000 euros from the previous declaration.

The question raised

Temporal attribution of interest. Obligation to re-submit Form 720.

The DGT's ruling

Interest from movable capital must be attributed to the tax period in which it becomes due, understood as those recognized in the account, even if they are accumulated to the principal. Regarding Form 720, the obligation to submit the informative declaration in subsequent years only exists if the combined balances have experienced an increase exceeding 20,000 euros compared to the last declaration submitted.

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