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V3377-20 18 November 2020 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · rendimientos de actividades económicas

Refund of a tax previously deducted as a business expense is taxed as business income

A haulier who no longer carries out business activities receives a tax refund (sanitary levy) and interest following a court ruling. The DGT rules that the tax amount constitutes business income, whereas the interest is classified as capital gains.

The question raised

Tax treatment of said amounts in Personal Income Tax.

The DGT's ruling

The tax refund, being an amount that was an expense of the activity, is imputed as income from economic activity in the fiscal year in which the refund is granted. Late payment interest, due to its compensatory nature, is taxed as capital gains and must be included in the savings tax base.

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