Skip to content
Back to index
V0755-16 25 February 2016 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · imputación temporal

Back pay awarded by court ruling is attributed to the tax year in which the judgment becomes final

A query was raised regarding when back pay for employment income awarded via court ruling should be declared. The Directorate General of Taxes (DGT) has ruled that such income must be attributed to the tax period in which the judicial resolution becomes final.

The question raised

Temporal imputation.

The DGT's ruling

Income from employment, the amount of which depended on a judicial ruling, must be attributed to the tax period in which the ruling becomes final. If this income covers a generation period exceeding two years, the 30 percent reduction shall apply. In these cases, the Administration's right to demand the tax has not lapsed with respect to the receipts from previous fiscal years.

Book your free first meeting