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V1977-17 21 July 2017 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · imputación temporal

Employment income and compensatory interest from court rulings are taxed in the year the judgment becomes final

A taxpayer requested clarification regarding the timing of tax imputation for bonuses and disability improvements received via court ruling, as well as for default interest. The Directorate General of Taxes (DGT) ruled that both employment income and compensatory interest must be taxed in the financial year in which the judgment becomes final.

The question raised

Temporal attribution.

The DGT's ruling

Income from employment received by judicial resolution is attributed to the tax period in which the judgment becomes final. Interest of a compensatory nature is taxed as capital gains in the tax year the judgment becomes final, being integrated into the savings tax base. The 30% reduction for generation exceeding two years is not applicable if this requirement is not met for each individual concept.

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