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V1341-21 11 May 2021 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · imputación temporal

Professional career back pay must be attributed to the period of its exigibility and may qualify for the 30% reduction

An interim civil servant received in 2020 back pay for professional career progression corresponding to the years 2015-2019. The DGT determines that this income must be attributed to the period in which it was exigible and that it may benefit from the reduction for income with a generation period exceeding two years.

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 becomes exigible, as determined by the administrative resolution of recognition. Since it is received in a period different from its exigibility due to circumstances not attributable to the taxpayer, a supplementary tax return for the corresponding period must be filed. Likewise, the 30% reduction is applicable if the generation period exceeds two years and no other similar reductions have been applied in the previous five periods.

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