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V1155-25 1 July 2025 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · rendimientos del trabajo

Judicial arrears may qualify for 30% reduction if generation period exceeds two years

The consultant asks how to tax judicially recognised arrears from a destination supplement. The DGT states that such arrears are attributed to the year when the judgment becomes final and may benefit from a 30% reduction if the generation period exceeds two years.

The question raised

Taxation in the Personal Income Tax (IRPF) of the referred arrears.

The DGT's ruling

Arrears due to destination supplement are imputed to the tax period in which the judicial resolution establishing them becomes final. As they are imputable to a single period and comprise an accumulation of more than two years, they fulfill the requirement of a generation period exceeding two years for the 30% reduction under Article 18.2 of the Personal Income Tax Law (LIRPF). This application is conditional upon the taxpayer not having applied said reduction to other income with a generation period exceeding two years in the five previous tax periods.

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