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V2534-20 24 July 2020 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · imputación temporal

Wage differences resulting from court rulings are attributed to the tax year in which the judgment becomes final

A worker received salary differences and late payment interest in 2020 arising from a 2017 court ruling. The DGT clarifies that salary arrears are attributed to the year the judgment becomes final, whereas late payment interest is treated as capital gains without withholding tax.

The question raised

Personal Income Tax (IRPF) withholding applicable to remuneration differences received.

The DGT's ruling

Remuneration differences resulting from a judicial ruling must be attributed to the tax period in which the judgment becomes final. Such amounts are considered arrears, and the fixed withholding rate for such concepts shall apply. Late payment interest is characterized as capital gains and is not subject to withholding. If the withholdings exceed the amounts due, the taxpayer may request a refund through the rectification of the tax return or an economic-administrative claim.

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