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V1669-24 10 July 2024 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · rendimientos del trabajo

Arrears in employment income must be attributed to the tax period in which they became due

A taxpayer requested guidance on how to tax salary arrears from 2017 and 2018 that were received at a later date. The DGT indicates that they must be attributed to the years in which they were due and that a 15% withholding tax rate applies.

The question raised

Taxation of the transaction under Personal Income Tax.

The DGT's ruling

Employment income must be attributed to the tax period in which it becomes due to the recipient. In the case of arrears, the attribution must be made in the fiscal years in which they become due (2017 and 2018 in this case). For these arrears, the applicable withholding rate is 15%, pursuant to the Personal Income Tax Regulations.

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