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V1198-21 30 April 2021 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · imputación temporal

Applicability of the 30% reduction for professional career back pay with a generation period exceeding two years

A physician received in 2020 back pay for professional career supplements corresponding to the years 2014 to 2019 following an administrative resolution. The DGT determines that this back pay must be attributed to the 2020 tax year and may benefit from the 30% reduction if the legal requirements are met.

The question raised

Application of the 30 percent reduction under Article 18.2 of Law 35/2006.

The DGT's ruling

Back pay must be attributed to the tax period in which it becomes due, which in this case is the year of the administrative resolution of recognition. The 30% reduction is applicable due to having a generation period exceeding two years. To this end, no other similar reductions must have been applied in the five previous tax periods and the amount must not exceed 300,000 euros annually.

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