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V1274-22 6 June 2022 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · imputación temporal

Back pay for overtime must be attributed to the year it was earned via supplementary tax returns

A civil servant enquired whether overtime back pay from 2018, 2019, and 2020, received in 2021, should be taxed in the year of receipt or the years it was earned. The DGT has determined that these amounts must be attributed to the years in which they became due through supplementary tax returns.

The question raised

Personal Income Tax (IRPF) taxation: temporal attribution and application of the reduction under Article 18.2 of Law 35/2006.

The DGT's ruling

Income from overtime must be attributed to the tax period in which it became due, which is when the hours were performed. When received in a different period, the special rule of Article 14.2.b) of Law 35/2006 applies, requiring the filing of supplementary tax returns for the corresponding years. The 30% reduction under Article 18.2 is not applicable because the attribution by years prevents a generation period exceeding two years within a single tax period.

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