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V1112-22 19 May 2022 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · rendimientos del trabajo

30% tax reduction inapplicable for income generated over less than two years

An interim civil servant has filed a legal claim for unpaid salary supplements. The Directorate General of Taxes (DGT) has ruled that this income must be attributed to the tax year in which the court judgment becomes final, and that the 30% reduction does not apply because the period of generation is less than two years.

The question raised

Application of the reduction under Article 18.2 of Law 35/2006.

The DGT's ruling

Income from employment pending judicial resolution must be attributed to the tax period in which the resolution becomes final. The 30% reduction for a generation period exceeding two years is not applicable if the time interval between the start and the end of the income does not exceed two years. In this case, the period between July 2019 and May 2021 does not reach said term.

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