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V0840-16 2 March 2016 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · rendimientos del trabajo

Back pay resulting from a judicial ruling is attributed to the tax year in which the resolution becomes final

A civil servant receives in 2015 back pay via judicial ruling corresponding to the years 2010-2014. The DGT determines that amounts up to the ruling are attributed to the year the resolution becomes final, and subsequent amounts to the year in which they are received.

The question raised

Taxation for Personal Income Tax purposes of the amounts received.

The DGT's ruling

Income from employment pending judicial resolution is attributed to the tax period in which the ruling becomes final. If this income spans more than two years, the 40% reduction for a generation period exceeding two years applies. Income accrued from the ruling until payment is attributed to the tax year in which it becomes due, without entitlement to the 40% reduction.

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