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V2164-24 ·9 October 2024 ·consulta-vinculante Medium impact
Tax

Back pay is taxed in the year the judgment becomes final and is not eligible for the 30% reduction

A query was raised regarding when judicially recognised back pay must be taxed and whether the reduction for irregular income can be applied. The DGT has determined that such amounts are attributed to the tax year in which the judgment becomes final and that the reduction under Article 18.2 LIRPF does not apply, as the period of generation does not exceed two years.

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2024-10-09PublishedPublished 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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