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A civil servant inquired about the taxation of professional career increments received in 2020 that related to previous years. The Directorate General for Taxes (DGT) ruled that these must be attributed to the period in which they became due and may benefit from the reduction applicable to income with a generation period exceeding two years.
This ruling clarifies the temporal imputation of backdated salary increments for civil servants, potentially allowing for tax relief through the specific reduction for long-term income generation.
The tax team reviews your specific situation.
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