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V2306-18 7 August 2018 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · rendimiento neto del trabajo

Legal fees for claiming unpaid wages are deductible up to a limit of €300 per year

A taxpayer inquired whether legal fees incurred to recover unpaid wages through FOGASA are deductible and in which tax year they should be applied. The Directorate General for Taxes (DGT) ruled that these fees constitute deductible legal defence expenses, subject to an annual limit of €300.

The question raised

Whether the fees paid to the lawyer related to the process for the collection of FOGASA funds may be deducted in the income tax return and in which fiscal year they are deductible.

The DGT's ruling

The fees of legal professionals who defend the interests of the worker against the person from whom they receive income constitute legal defense expenses. These expenses are deductible pursuant to Article 19.2 e) of the LIRPF with an annual limit of 300 euros. The temporal imputation of these expenses must be carried out in the tax period in which they become due, regardless of when the claimed income is imputed.

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