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V1191-21 30 April 2021 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · rendimientos del trabajo

Professional career back pay must be attributed to the year in which it was due and may be eligible for the 30% reduction

An interim civil servant received in 2020 back pay for professional career supplements corresponding to the years 2015-2019. The DGT determines that these must be attributed to the year in which they were due (2019) 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 must be attributed to the tax period in which it was due, as determined by the administrative resolutions of recognition, which in this case corresponds to 2019. Since it was received in 2020, a supplementary tax return for 2019 must be filed without penalties or interest. Likewise, it is possible to apply the 30% reduction if the generation period exceeds two years and the requirements are met regarding not having applied said reduction in the previous five periods.

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