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V1879-20 10 June 2020 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · imputación temporal

Income from work following a court ruling is attributed to the year the judgment becomes final

A worker has enquired as to when salary differences and late payment interest should be taxed following a court ruling that annulled a redundancy procedure. The Directorate General for Taxes (DGT) clarifies that salaries are attributed to the year the judgment becomes final, whereas late payment interest is taxed as capital gains.

The question raised

Taxation of income to be received, owed by the entity, in the event that the taxpayer joins the pension payroll direct debit promotion. Temporal attribution of income. Taxation of late payment interest.

The DGT's ruling

Income from employment recognized by judicial sentence must be attributed to the tax period in which the resolution becomes final. If they are not received in that year, a supplementary tax return for the corresponding fiscal year must be filed without penalties or late payment interest. Late payment interest, having an indemnification nature, is taxed as capital gains in the period in which the change in assets occurs, i.e., when they are quantified and their payment is agreed.

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