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V1885-15 15 June 2015 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · intereses de demora

Late payment interest on tax refunds is taxed as capital gains in the savings base

A query is made regarding the taxation of late payment interest paid by the Tax Agency following a claim. The DGT determines that, as they are compensatory in nature, they are not income from movable capital but rather capital gains.

The question raised

Taxation of late payment interest paid by the Tax Agency as a consequence of the granting of an economic-administrative claim.

The DGT's ruling

Late payment interest on tax refunds constitutes compensatory interest that is taxed as capital gains as it represents an incorporation of money into the assets. Pursuant to Article 49.1.b) of the IRPF Law, these must be included in the savings tax base. However, for periods between 2013 and 2014, if the compensation did not exceed one year, they had to be included in the general base due to the amendment of Article 46.b).

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