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V1106-21 27 April 2021 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · rendimientos del trabajo

Professional career back payments must be attributed to the period they were due and may qualify for the 30% reduction

A civil servant received back payments for professional career supplements in 2020, covering the years 2015 to 2019. The DGT has ruled that these earnings must be attributed to the period in which they became due and allows for the application of the reduction for income with a generation period exceeding two years.

The question raised

Taxation of the aforementioned back pay in Personal Income Tax (IRPF).

The DGT's ruling

Back pay must be attributed to the tax period in which it becomes due, as determined by the administrative resolution of recognition. If it is received in a period different from that of its due date due to circumstances not attributable to the taxpayer, a supplementary self-assessment for the previous periods is appropriate. Likewise, the 30% reduction is applicable if the generation period exceeds two years and no other similar reductions have been applied in the previous five periods.

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