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V1167-21 29 April 2021 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · imputación temporal

Back pay resulting from a judicial ruling is attributed to the tax year in which the ruling becomes final

A nurse received payment for salary differences from previous years in 2020 after winning a lawsuit. The DGT determines that this back pay must be taxed in 2020 and analyzes whether the reduction for irregularity is applicable.

The question raised

Taxation in Personal Income Tax (IRPF) of the aforementioned remuneration differences.

The DGT's ruling

Remuneration differences pending judicial resolution are attributed to the tax period in which the ruling becomes final. Amounts subsequent to the ruling are attributed to when they would have been due according to the general rule. Back pay covering a generation period exceeding two years may qualify for the 30% reduction if no other similar reductions have been applied in the previous five periods.

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