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V0910-24 25 April 2024 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · rendimientos del trabajo

Judicially recognised retirement pension arrears may qualify for the 30% tax reduction

A taxpayer has enquired about the taxation of retirement pension arrears paid by the Social Security following a court ruling. The DGT has determined that these amounts are attributed to the year in which the judgment becomes final and that they may qualify for the 30% reduction for periods of generation exceeding two years.

The question raised

Taxation under Personal Income Tax.

The DGT's ruling

Arrears in public pensions are imputed to the tax period in which the judicial resolution determining their amount becomes final. Although Article 18.2 of the Personal Income Tax Law initially excludes pensions from the reduction for a generation period exceeding two years, the DGT applies the TEAC criterion. Therefore, the 30% reduction in paragraph 2 of Article 18 is applicable to pensions recognized by judicial sentence that cover more than two years.

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