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V1875-20 10 June 2020 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · imputación temporal

Post-contractual non-compete compensation is attributed when it becomes due

A worker enquired whether compensation received for a two-year non-compete agreement could be attributed to the tax periods covered by the agreement. The DGT ruled that such employment income must be attributed to the period in which it becomes due to the recipient.

The question raised

Temporal attribution of the compensation. Possibility of attributing said compensation during the tax periods to which the agreement extends.

The DGT's ruling

Income from employment, such as compensation for a post-contractual non-compete agreement, is attributed to the tax period in which it becomes due to the recipient, pursuant to Article 14.1 a) of the Personal Income Tax Law (LIRPF).

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