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V1745-24 16 July 2024 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · rendimientos de actividades económicas

Compensation for truck cost overruns taxed as business income and interest as capital gains

A retired haulier enquires about the taxation of a court-awarded compensation for cost overruns in truck purchases and the associated legal interest. The DGT rules that the compensation constitutes business income, while the interest is classified as a capital gain.

The question raised

Considering that the activity had already ceased in 2022, a question is asked regarding taxation under Personal Income Tax (IRPF).

The DGT's ruling

The compensation for the cost overrun of the vehicles must be taxed as income from economic activity, similar to the professional fees for the claim. Legal interest has a compensatory nature and must be taxed as a capital gain integrated into the general tax base. The temporal imputation of the compensation occurs when the judicial resolution becomes final, whereas the interest is imputed at that same moment.

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