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V1193-21 30 April 2021 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · imputación temporal

Professional career back pay is imputed to the year it becomes due and may qualify for the 30% reduction

A civil servant asks how to tax back pay for a professional career supplement received in 2020 but corresponding to previous years. The DGT determines that it must be imputed 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 imputed 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 of its due date due to circumstances not attributable to the taxpayer, a supplementary tax return for the corresponding period must be filed. 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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