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V1186-21 29 April 2021 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · rendimientos del trabajo

Back pay for professional career progression is attributed to the period of its exigibility and may qualify for the 30% reduction

A civil servant asks how to tax back pay for a professional career progression supplement received in 2020 but corresponding to previous years. The DGT determines that it must be attributed to the period in which it was exigible and that the reduction for income with a generation period exceeding two years may apply.

The question raised

Taxation of the aforementioned back pay in Personal Income Tax (IRPF).

The DGT's ruling

Back pay is considered income from employment and its temporal attribution must be made to the tax period in which it was exigible, as determined by the administrative resolution of recognition. Upon receipt in a period different from its exigibility due to circumstances not attributable to the taxpayer, a supplementary self-assessment for the previous period is appropriate. Likewise, the 30% reduction is applicable if the generation period exceeds two years and no other similar reductions have been applied in the previous five periods.

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