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V1480-21 19 May 2021 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · imputación temporal

Application of the 30% reduction for income with a generation period exceeding two years

A local police officer asks whether the 30% reduction can be applied to salary arrears received in 2020 following an acquittal in criminal proceedings. The Directorate General of Taxes (DGT) rules that arrears are attributed to the year in which the judicial resolution becomes final, and that the reduction applies if the generation period exceeds two years.

The question raised

Application of the 30 percent reduction under Article 18.2 of Law 35/2006.

The DGT's ruling

Arrears for remuneration not received due to a pending judicial ruling are imputed to the tax period in which the ruling becomes final. The 30% reduction is applicable if there is a generation period exceeding two years. For its application, no other income 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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