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V2286-23 28 July 2023 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · nulidad del contrato

Refund of interest due to revolving card nullity is non-taxable, but statutory and default interest are general income

A query was raised regarding the Personal Income Tax (IRPF) treatment of interest and commission refunds from a revolving card following a court ruling of nullity. The Directorate General for Taxes (DGT) determines that the reimbursement of excess capital is not taxable, but statutory and procedural default interest must be included as general income.

The question raised

Taxation in Personal Income Tax (IRPF) of the refund of interest and commissions from 'revolving' cards due to a judicial declaration of nullity of the contract and of legal and procedural default interest.

The DGT's ruling

The reimbursement of amounts exceeding the capital lent due to the nullity of the contract has no impact on Personal Income Tax (IRPF). Legal and procedural default interest, having an indemnification nature, are classified as capital gains. Following the doctrine of the Supreme Court, these gains must be included in the general tax base as general income, and not in the savings tax base.

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