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V0135-20 21 January 2020 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · rendimientos del trabajo

Payroll errors from previous years must be corrected by amending the tax return of the affected financial year

An employee received an overpayment and another an underpayment in their 2017 payslips, with the error rectified in 2018. The Tax Agency has ruled that the excess amount does not affect 2018 income and that back payments must be attributed to the year they were due.

The question raised

Impact on Personal Income Tax for employees regarding the reimbursement of remuneration and the payment of back pay made in 2018.

The DGT's ruling

The refund of amounts unduly received in 2017 has no impact on the 2018 tax return, and the employee must rectify their 2017 self-assessment. The back pay received in 2018 corresponding to 2017 must be attributed to said fiscal year through a supplementary self-assessment, applying the special rule for temporal imputation set forth in Article 14.2.b) of the Personal Income Tax Law.

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