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V1482-19 20 June 2019 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · imputación temporal

Salary arrears awarded by court ruling are attributed to the tax year in which the judgment becomes final

A taxpayer inquired whether salary arrears from 2012 and 2013 had expired after receiving payment in 2017 following a court ruling. The DGT ruled that such income must be attributed to the tax year in which the judgment becomes final, rather than the period in which it was originally earned.

The question raised

Whether the employment income corresponding to the 2012 and 2013 fiscal years would be time-barred.

The DGT's ruling

When the amount of income is pending judicial resolution, the amounts are imputed to the tax period in which the resolution becomes final. In this case, the earnings from 2012 to 2016 must be reflected in the tax return for the fiscal year in which the judgment becomes final. Upon application of this imputation rule, the earnings are not considered time-barred. Furthermore, if the generation period exceeds two years, the 30% reduction provided for in Article 18.2 of the LIRPF could be applied.

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