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V1312-21 11 May 2021 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · rendimientos del trabajo

Back pay for professional career progression is attributed to the tax year in which it becomes due and may qualify for the 30% reduction

An interim civil servant of the Generalitat Valenciana inquires about the taxation of back pay for the professional career supplement received in 2019 for the periods from 2015 to 2019. The DGT determines that these earnings are attributed to the tax year in which they become due and may benefit from the reduction for irregular income.

The question raised

Taxation of the aforementioned back pay in the IRPF.

The DGT's ruling

Back pay for the professional career supplement constitutes employment income that must be attributed to the tax period in which it becomes due, according to the administrative resolution of recognition. As the generation period exceeds two years, the 30% reduction provided for in Article 18.2 of the IRPF Law applies. To apply said reduction, no other earnings with a generation period exceeding two years must have been obtained in the five tax periods prior to those becoming due.

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