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The DGT clarifies that income from assets of an inheritance in suspense is attributed to heirs or beneficiaries according to their share, regardless of whether they can dispose of it.
Question raised: Taxation of income derived from assets owned by the deceased at the time of death in their respective tax returns for Personal Income Tax or Non-Resident Income Tax.
Income generated by an unadministered estate is attributed to each heir or legatee according to their share, even if they have not been able to dispose of it. This income maintains the nature of its source and is imputed to the tax period in which it becomes due to the recipient. In the event that a judicial ruling modifies ownership, the interested parties may request the rectification of their tax returns.
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