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A civil servant enquires about the taxation of back pay for a professional career progression supplement received in 2020 for previous years. The DGT determines that these payments must be attributed to the period in which they become due and analyses the application of the reduction for irregular income.
This ruling clarifies the timing of tax liability for retroactive salary payments and confirms the eligibility for tax relief on irregular income for civil servants.
The tax team reviews your specific situation.
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