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V1173-25 1 July 2025 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · imputación temporal

Wage arrears from judicial rulings are attributed to the year the decision becomes final

A worker received 38,000 euros for wage differences arising between 2018 and 2025 under a judicial agreement. Tax authorities determine that these income must be taxed in 2025, the year the ruling becomes final, and allow the reduction for irregularity.

The question raised

Temporal imputation in Personal Income Tax (IRPF).

The DGT's ruling

Income from employment pending judicial resolution is imputed to the tax period in which the resolution becomes final. In this case, as the judicial order of February 25, 2025, is the one quantifying the differences, the imputation corresponds to the 2025 tax year. Likewise, the 30 percent reduction is applicable for having a generation period exceeding two years, provided that similar reductions have not been applied in the five previous tax periods.

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