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V1931-15 18 June 2015 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · imputación temporal

Advances on appealed judgments are not imputed to Personal Income Tax until the resolution becomes final

A trade union and a lawyer inquire as to when they must declare advances from an appealed judicial judgment and the lawyer's fees. The Tax Agency responds that workers do not declare the advance until the judgment becomes final, and the lawyer must impute their income according to the accrual basis or the cash basis.

The question raised

Question raised - Temporal imputation of the plaintiffs' advance and the 10 percent corresponding to the lawyer.

The DGT's ruling

Advances received by workers due to an appealed judgment are not imputed to the tax period until the judicial resolution becomes final. For the lawyer, fees are imputed when the service is accrued, unless they opt for the cash basis, in which case the amount (excluding VAT) is imputed when received. Regarding VAT, accrual occurs when the services are rendered, unless there are advance payments, in which case accrual occurs at the time of collection.

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