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V2103-20 23 June 2020 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · rendimientos del trabajo

Settlements received following a court ruling must be attributed to the year they were due

A taxpayer received a €5,000 settlement in 2019 for services rendered in 2018 following legal proceedings. The DGT has ruled that this income must be taxed in the 2018 financial year via a supplementary tax return.

The question raised

Taxation of the amount received by the consultant. Temporal imputation.

The DGT's ruling

Amounts from the settlement of wages are income from employment. When received in a period different from that of their exigibility due to circumstances not attributable to the taxpayer, they must be imputed to the period in which they were exigible (2018). A supplementary self-assessment must be filed without penalties or late payment interest within the period between receipt and the end of the following declaration period. The 30% reduction for generation periods exceeding two years does not apply.

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