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V1184-18 9 May 2018 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · imputación temporal

Salary arrears from settlement agreements are attributed to the period when the agreement becomes final

A worker received pay differences from previous years in 2018 following a settlement agreement. The DGT has ruled that such arrears must be attributed to the period in which the court order approving the agreement becomes final.

The question raised

Temporal imputation and applicable withholding tax.

The DGT's ruling

Salary differences from the beginning of the period claimed until the date of the court order approving the agreement are imputed to the fiscal year in which said order becomes final. Arrears subsequent to the date of the court order are imputed to the fiscal year in which they would have been due according to the general rule. The amount corresponding to a generation period exceeding two years may benefit from the 30% reduction if it is imputed to a single tax period.

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