Skip to content
Back to index
V4940-16 15 November 2016 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · rendimientos del trabajo

Court-ordered payments are attributed to the tax year in which the ruling becomes final

A civil servant has enquired about how to declare payments owed following a court ruling and the refund of a retirement pension. The Directorate General of Taxes (DGT) has ruled that amounts pending a judicial decision must be attributed to the year in which the ruling becomes final, while the refund of unduly received income must be managed by rectifying the tax year in which it was originally declared.

The question raised

The taxpayer knows they must file a supplementary tax return for the 2015 fiscal year regarding the remunerations for that year paid in 2016, but questions how to declare the amount of the retirement pension received in 2015 which is to be backdated. Specifically, the following is asked:

The DGT's ruling

Income from employment pending judicial resolution is attributed to the tax period in which the resolution becomes final. Income received in periods other than when it was due due to causes not attributable to the taxpayer is attributed to the fiscal year in which it was due by means of a supplementary self-assessment without penalty. The refund of undue income does not affect the fiscal year of the refund, but rather the fiscal year in which it was declared as income, allowing for the rectification of the self-assessment for that year.

Book your free first meeting