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V0829-24 22 April 2024 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · imputación temporal

Overtime must be taxed in the year it was worked, even if paid in the following year

A local police officer inquired whether overtime bonuses earned in 2023, but paid in February 2024 due to budget constraints, should be taxed in 2023 or 2024. The Directorate General of Taxes (DGT) ruled that they must be attributed to the year in which they became due, which is 2023.

The question raised

Temporal attribution in Personal Income Tax.

The DGT's ruling

Income from employment must be attributed to the tax period in which it becomes due. In this case, the due date for overtime pay corresponds to the year in which it was performed. Since it is received in a different period due to circumstances not attributable to the taxpayer, the special rule of Article 14.2.b) of the Personal Income Tax Law applies. As it was collected before the end of the filing period for the year in which it became due, a supplementary tax return is not required.

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