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V3027-21 ·3 December 2021 ·consulta-vinculante Medium impact
Tax

A 15% withholding tax rate must apply to backdated employment income from previous years

A query was raised regarding the withholding tax rate applicable to backdated employment income relating to previous tax years. The Directorate General for Taxes (DGT) ruled that, as payment is made in a period different from the one to which it is attributed, the 15% rate applies.

In 5 key points

How it affects those involved

This ruling clarifies the tax treatment for backdated payments, ensuring that taxpayers and employers apply the correct withholding rate when income is paid in a different tax year than when it was earned.

Lifecycle

2021-12-03PublishedPublished 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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