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A civil servant enquired about when to declare payments for overtime services from previous years that were received late following a claim. The Directorate General of Taxes (DGT) ruled that these must be attributed to the tax year in which they were due, rather than the year in which they were actually paid.
Taxpayers receiving delayed payments for work performed in previous years must report this income in the tax period corresponding to when the service was performed and the payment became due, potentially requiring supplementary tax returns for those past periods.
The tax team reviews your specific situation.
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