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V1420-20 14 May 2020 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · imputación temporal

Amounts from a labour court ruling for a deceased person are attributed to the tax year of their death

A taxpayer inquired about the taxation of an amount received following a labour court ruling after the death of their spouse. The DGT has determined that employment income must be attributed to the tax year in which the deceased passed away, and the heir shall be taxed via Inheritance Tax.

The question raised

Temporal imputation in the Personal Income Tax of the amount demanded and recognized in a court judgment.

The DGT's ruling

The amounts from a court judgment regarding income from employment must be attributed to the person who generated the right, in this case, the deceased person. According to rules of temporal imputation, this income is imputed to the tax period of the decedent's death. The heir must pay tax on said amount in the Inheritance and Gift Tax, understanding that the acquisition of the right occurs upon the finality of the judgment.

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