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V0585-25 1 April 2025 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · salarios de tramitación

15% retention due on salary arrears from prior fiscal years

A company asks what retention to apply and on what basis when paying salary arrears following the nullity of a dismissal. The DGT responds that these salaries are attributable to the fiscal year in which the judgment became final and must be subject to a 15% retention.

The question raised

The type of withholding tax applicable and the amount upon which the withholding should be applied.

The DGT's ruling

Back pay salaries are attributed to the tax period in which the judgment recognizing the right becomes final. As these are incomes attributable to previous fiscal years, a withholding tax rate of 15% must be applied to the gross amount of the back pay salaries. The withholding is carried out at the time of payment, but is attributed to the period to which the income is attributed. The unduly received unemployment benefit must not be deducted to calculate the withholding base.

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