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V1405-21 ·13 May 2021 ·consulta-vinculante Medium impact
Tax

Backdated professional career increments are taxed in the year they become administratively enforceable and may qualify for a reduction

A civil servant has enquired about the taxation of backdated professional career increments received in 2020 that relate to previous years. The Directorate General for Taxes (DGT) has ruled that these must be attributed to the period in which the administrative resolution made them enforceable. Furthermore, they may qualify for the 30% tax reduction if the requirements regarding the generation period are met.

In 6 key points

How it affects those involved

This ruling clarifies the timing for tax reporting backdated salary increases for civil servants and confirms eligibility for tax relief under specific conditions.

Lifecycle

2021-05-13PublishedPublished in the BOE
Official text Based on BOE data (boe.es). Information, not advice.

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This analysis is informational only and does not constitute legal advice or create a client-adviser relationship. BM Consulting.
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