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V0740-22 5 April 2022 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · rendimientos del trabajo

30% reduction applicable to income generated over a period exceeding two years

A worker received back pay for temporary disability allowances from previous years following a court ruling. The DGT has determined that these amounts must be attributed to the tax year in which the judgment becomes final, allowing for the application of the 30% tax reduction.

The question raised

Application of the 30 percent reduction under Article 18.2 of Law 35/2006.

The DGT's ruling

Income from employment pending judicial resolution shall be attributed to the tax period in which the judgment becomes final. If the amount covers a time period exceeding two years and is attributed to a single period, the 30% reduction provided for in Article 18.2 of Law 35/2006 shall apply. This reduction shall not be applicable if, in the five preceding tax periods, the taxpayer has already applied said reduction to other income with a generation period exceeding two years.

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