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New guides on the latest Spanish tax and immigration developments.
Practical tools for informed decision-making.
A local police officer inquired whether overtime bonuses earned in 2023, but paid in February 2024 due to budget constraints, should be taxed in 2023 or 2024. The Directorate General of Taxes (DGT) ruled that they must be attributed to the year in which they became due, which is 2023.
This ruling clarifies the timing of tax liabilities for workers receiving delayed payments, ensuring that income is reported in the period it was earned rather than when it was received.
The tax team reviews your specific situation.
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