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V3331-15 28 October 2015 · SG de Tributación de las Operaciones Financieras Criterion in force
IRPF · rendimientos del capital mobiliario

Tax refunds for interest on annulled bonds possible; statutory interest taxed as capital gains

A taxpayer inquired about the taxation of interest from subordinated bonds declared null by a court, and the statutory interest awarded by the ruling. The Tax Agency responded that the tax return can be amended to recover tax paid on the annulled interest, and that statutory interest is treated as a capital gain.

The question raised

Tax implications in Personal Income Tax regarding the declaration of nullity, with respect to the refund of gross interest from securities, as well as the receipt of legal interest recognized in a judgment and paid by the banking entity.

The DGT's ruling

Interest from annulled bonds may be subject to self-assessment rectification to obtain a refund of undue payments, even if the right has prescribed. Legal interest resulting from nullity is compensatory in nature and is taxed as capital gains, forming part of the savings tax base. The temporal imputation of these legal interests occurs in the period in which the judgment becomes final. Procedural default interest also constitutes independent capital gains.

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