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V1379-18 24 May 2018 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · imputación temporal

Arrears from disability pension following court ruling are attributed to the year the resolution becomes final

A taxpayer received arrears for a permanent disability pension in 2017, backdated to 2012 following a court ruling. The DGT clarifies how these amounts must be declared and whether tax reductions can be applied.

The question raised

Temporal attribution of amounts received by judicial judgment.

The DGT's ruling

Income corresponding to the period prior to the judgment is attributed to the fiscal year in which the judicial resolution becomes final. Income generated from the judgment until payment is attributed to the periods in which it was due. The 30% reduction under Article 18.2 is not applicable as it is a Social Security benefit, nor is the reduction under paragraph 3 applicable as it is not a benefit received as a lump sum, but rather an accumulation of monthly payments.

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