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V0819-21 7 April 2021 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · rendimientos del trabajo

Back pay for professional career progression is attributed to the year it becomes due and may qualify for the 30% reduction

A civil servant received back pay for professional career progression covering the years 2015-2019, paid in 2020. The DGT has ruled that these payments must be attributed to the period in which they became due (2019) and that they may benefit from the tax reduction for income with a generation period exceeding two years.

The question raised

Taxation of the aforementioned arrears in Personal Income Tax.

The DGT's ruling

Arrears are considered income from employment, and their temporal imputation must be made to the tax period in which they became due, according to the administrative resolutions of recognition. If they are received in a period different from that of their due date due to circumstances not attributable to the taxpayer, a supplementary self-assessment must be filed without penalties or interest. Likewise, it is possible to apply the 30% reduction if the generation period exceeds two years and the requirements of the Personal Income Tax Law are met.

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