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V1282-22 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 due, not the year it was paid

A civil servant inquired which tax year should be used to declare back pay for overtime worked in 2018, 2019, and 2020 but received in 2021 and 2022. The Directorate-General for Taxes (DGT) ruled that these amounts must be taxed in the years the services were performed, as they were due at those times.

The question raised

Temporal imputation in the Personal Income Tax of the aforementioned back payments.

The DGT's ruling

The imputation of income from employment must be carried out in the tax period in which it becomes due according to existing rules or agreements. In this case, the due date corresponds to the years in which the overtime was performed (2018, 2019, and 2020). As it is received in subsequent years, the special rule of Article 14.2.b) of the Personal Income Tax Law must be applied, performing supplementary tax returns for the corresponding fiscal years without penalties or interest.

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