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An interim civil servant received back pay for professional career supplements in 2020, covering the period from 2015 to 2019. The Directorate-General for Taxes (DGT) has ruled that these earnings must be attributed to the tax year in which they became enforceable via resolution, which in this case is 2019.
This ruling clarifies the timing for tax reporting of retroactive payments for civil servants, ensuring that back pay is taxed in the year the right to receive it is formally established rather than the year it is physically paid.
The tax team reviews your specific situation.
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