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V4844-16 10 November 2016 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · condena en costas

No obligation to withhold IRPF on professional fees paid by costs judgment

A lawyer asks whether IRPF withholding applies to fees received from a costs judgment. The DGT responds that the judgment debtor pays an indemnity to the winning party, not professional income to the lawyer.

The question raised

Cuestión planteada Sometimiento a retención de los honorarios percibidos a través de la condena en costas.

The DGT's ruling

La condena en costas genera un crédito a favor de la parte vencedora y no pertenece a su representante. Por tanto, la parte condenada no satisface rendimientos profesionales al abogado, sino una indemnización a la parte vencedora. En consecuencia, la parte condenada no está obligada a practicar retención de IRPF sobre dichos honorarios.

Apply this to a real case

What is published here, applied to a company or a specific case. The first meeting is free.

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