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V1124-22 19 May 2022 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · imputación temporal

Pay differentials resulting from court rulings are attributed to the tax year in which the judgment becomes final

A taxpayer inquired about the taxation of salary differences received in 2021 following a court ruling. The DGT ruled that these must be attributed to the period in which the judgment becomes final and that the reduction for income generated over more than two years may apply.

The question raised

Taxation under Personal Income Tax of the aforementioned salary differences.

The DGT's ruling

Income from employment pending judicial resolution is attributed to the tax period in which the resolution becomes final. If the differences span a generation period exceeding two years, the 30 percent reduction provided for in Article 18.2 of the Personal Income Tax Law is applicable. In the event that the attribution corresponds to a previous fiscal year, a supplementary self-assessment must be filed without penalties or interest.

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