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V0704-22 1 April 2022 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · imputación temporal

Pay differences due to reduced working hours do not qualify for irregular income reduction if the period is less than two years

A civil servant received salary differences in 2021 for the years 2012 and 2013 following the annulment of a resolution. The inquiry asks whether these arrears can qualify for the irregular income reduction for Personal Income Tax (IRPF) purposes.

The question raised

Taxation under Personal Income Tax (IRPF).

The DGT's ruling

Income must be attributed to the period in which it becomes due, which in this case is 2020 due to the administrative resolution. The 30% reduction for a generation period exceeding two years is not applicable because the arrears cover a period of 22 months. They are not considered notoriously irregular income as they do not fall within the scenarios set forth in the Personal Income Tax Regulations.

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