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V2481-14 23 September 2014 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · rendimientos del trabajo

Salaries awarded by judicial sentence are imputed to the tax year in which the resolution becomes final

A taxpayer asks how to declare salaries not received following a judicial sentence and how to treat the refund of pensions unduly collected. The DGT determines that salaries are imputed to the year the sentence becomes final and that the refund of pensions requires rectifying the tax returns of the years in which they were received.

The question raised

Temporal imputation of the amounts to be received by judicial sentence and the possibility of applying the 40 percent reduction provided for in Article 18 of the Personal Income Tax Law. Additionally, the effects of the refund of amounts received as retirement pensions on the Personal Income Tax returns for the tax periods 2012, 2013, and 2014 are questioned.

The DGT's ruling

Judicially recognized salaries are income from employment and are imputed to the tax period in which the judicial resolution becomes final. The 40% reduction does not apply because the generation period is less than two years. The refund of unduly received pensions must be regularized by rectifying the self-assessments of the tax years in which they were declared as income, not in the year of the refund.

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