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V1319-21 11 May 2021 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · rendimientos del trabajo

Professional career back pay must be attributed to the period of enforceability via supplementary tax returns

An interim civil servant received professional career back pay in 2020 covering the years 2016–2020. The DGT has ruled that these earnings must be attributed to the period in which they became enforceable by administrative resolution, and that the 30% reduction may apply if the generation requirements are met.

The question raised

Taxation of the aforementioned back pay in Personal Income Tax (IRPF).

The DGT's ruling

Back pay must be attributed to the tax period in which it is exigible, as determined by the administrative resolution of recognition. If it is received in a period different from its exigibility due to circumstances not attributable to the taxpayer, a supplementary tax return must be filed without penalty or interest. Likewise, the 30% reduction is applicable for having a generation period exceeding two years, provided that similar reductions have not been applied in the previous five tax periods.

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