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V1457-22 20 June 2022 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · estimación directa

Reversal of credit impairment charges must be recognised in the tax year the payment is received

A professional enquired whether payments received under a court ruling relating to previous years should be declared in 2021, and whether they could apply the reduction for income with a generation period exceeding two years. The DGT ruled that the full amount must be recognised in 2021 and that the reduction depends on whether such income is considered regular within their professional activity.

The question raised

Whether the amounts received should be declared via a supplementary tax return for the non-prescribed fiscal years and whether the reduction for income with a generation period exceeding two years would apply to the income received.

The DGT's ruling

If impairments of receivables had been previously deducted for tax purposes, the reversal of these due to the collection of invoices must be included in the taxable base of the fiscal year in which the collection occurs. Regarding the 30% reduction for a generation period exceeding two years, this shall be applicable if the collection is an isolated event and not part of an activity where such income is obtained regularly or habitually. The burden of proof regarding the regularity of the income lies with the Administration.

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