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V1568-22 30 June 2022 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · imputación temporal

Back pay for overtime must be attributed to the year it was due, not the year it is paid

A civil servant inquired about how to declare overtime back pay from 2018, 2019, and 2020 that was received in 2021 for Income Tax (IRPF) purposes. The Directorate General of Taxes (DGT) ruled that these amounts must be attributed to the years in which the overtime was actually worked via supplementary tax returns.

The question raised

Temporal imputation in Personal Income Tax of the aforementioned arrears.

The DGT's ruling

Income from overtime must be attributed to the tax period in which it became due, i.e., the years in which the overtime was performed. When received in a different period, the special rule of Article 14.2.b) of the Personal Income Tax Law applies, and supplementary tax returns for the corresponding fiscal years must be filed without penalties or interest.

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