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V0233-16 21 January 2016 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · salarios de tramitación

Pensions of proceedings are earnings from work and attributable to the year in which the judicial decision becomes final

The tax treatment of pensions of proceedings following the nullity of a dismissal is consulted. Hacienda determines that they are earnings from work and must be taxed in the year when the judicial decision becomes final.

The question raised

The inquiry concerns the tax treatment of the processing wages that the taxpayer must satisfy.

The DGT's ruling

Processing wages are classified as income from employment. Their temporal allocation must be made in the tax period in which the amount becomes due, which occurs when the determination of the right or its amount becomes final by judicial resolution. If these earnings correspond to a period exceeding two years, the 30% reduction provided for in Article 18 of the LIRPF could apply. They are not considered arrears for the calculation of withholding tax.

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