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V1294-24 4 June 2024 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · rendimientos del trabajo

Maternity allowance is attributed to the period of eligibility and legal costs compensation is a capital gain

A taxpayer has requested clarification regarding the Personal Income Tax (IRPF) treatment of a maternity allowance received retroactively, legal fees, and a potential €1,800 compensation for legal costs. The Tax Agency has determined how Social Security payments should be attributed and how the compensation received should be taxed.

The question raised

Tax treatment under Personal Income Tax (IRPF) of the amount received, of the legal fees, and of the "amount that will be claimed from the INSS when the hearing is held as compensation for legal expenses, which, in accordance with the CJEU ruling of September 14, 2023, makes it mandatory to establish compensation for the damages actually suffered due to the denial of my petition, which the Supreme Court set at €1,800.00".

The DGT's ruling

The maternity supplement is income from employment attributable to the period of enforceability; if received in different periods, a supplementary self-assessment must be filed. Legal defense expenses are deductible up to an annual limit of 300 euros. The compensation for legal costs constitutes a capital gain, and the expenses incurred in the litigation must be deducted from the amount received to determine said gain.

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