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V1188-21 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 in which it becomes due 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 for previous years. The DGT determines that it must be attributed to the period in which it became due and that it may benefit from the reduction for income with a generation period exceeding two years.

The question raised

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

The DGT's ruling

Back pay is attributed to the tax period in which it becomes due, as determined by the administrative resolution of recognition. When received in a period different from that in which it became due due to circumstances not attributable to the taxpayer, a supplementary tax return for the corresponding period must be filed. Likewise, the 30% reduction applies if the generation period exceeds two years and no other similar reductions have been applied in the previous five periods.

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