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V1096-14 15 April 2014 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · rendimientos del trabajo

Triennial increments paid following court ruling are attributed to the year the judgment becomes final

A worker is entitled to receive triennial increments from previous years following a 2014 court ruling. The DGT has determined that amounts owed up to the ruling are attributed to the year the judgment becomes final, while subsequent amounts are attributed to the year they become due.

The question raised

Taxation for Personal Income Tax purposes of the amounts received.

The DGT's ruling

Income from employment pending judicial resolution is imputed to the tax period in which the resolution becomes final. If this income spans more than two years, the 40% reduction for non-periodicity applies. Income from the date of the judgment until its payment is imputed to the period of its enforceability without the 40% reduction. For arrears paid in a period different from that of their imputation, the withholding rate is 15%.

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