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V2916-23 31 October 2023 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · rendimientos de actividades económicas

Income following the cessation of professional activity must be declared as income from economic activities

A lawyer inquired how to declare income from pending matters after ceasing their professional activity. The DGT responds that, even if the activity is no longer being performed, such income retains its nature as income from economic activities and must be imputed according to the accrual principle.

The question raised

Question posed: How should the income to be received after deregistration be declared in the Personal Income Tax (IRPF), given that many matters in which they intervened will take more than six months to be collected from the time the work was performed.

The DGT's ruling

Income derived from the maintained professional activity must be declared as income from economic activities, even if the taxpayer no longer performs the activity. As the taxpayer has not opted for the cash basis and these are not installment transactions with a maturity exceeding one year, the accrual principle applies. The inquirer is not obliged to register in the census of entrepreneurs nor to fulfill formal obligations of entrepreneurs regarding this income.

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