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V0449-21 3 March 2021 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · imputación temporal

Productivity bonuses are attributed to the tax year in which they become due, not necessarily the year the work was performed

A query was made regarding which tax year should productivity bonuses for 2020 performance, quantified and approved by decree in 2021, should be attributed to. The DGT ruled that they must be taxed in 2021, as that is when the employee is entitled to demand payment.

The question raised

Question posed: A request to determine to which tax period the computable income and deductible expenses associated with this remuneration are attributed for Personal Income Tax purposes.

The DGT's ruling

Income from employment is attributed to the tax period in which it becomes due to the recipient. If the exigibility of payment occurs in a period subsequent to the performance of the work, the attribution must be made in that subsequent period. In this case, as the productivity supplement could not be demanded until the approval of the decree in 2021, the income must be included in the tax return for said fiscal year.

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