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V1118-22 19 May 2022 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · imputación temporal

Back pay for overtime must be attributed to the year it became due via supplementary tax returns

A taxpayer received back pay in 2021 for overtime worked in 2018, 2019, and 2020 following legal proceedings. The DGT has ruled that this income must be taxed in the years the overtime was performed, rather than in the year it was collected.

The question raised

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

The DGT's ruling

Employment income must be attributed to the tax period in which it becomes due. If received in periods different from its due date due to circumstances not attributable to the taxpayer, the imputation rule applies to the years in which it was due (2018, 2019, and 2020). This requires the filing of supplementary tax returns for said fiscal years without penalties or late payment interest.

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