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V1698-24 10 July 2024 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · rendimientos del trabajo

Arrears for hardship allowances are attributed to the year the administrative resolution is issued

A worker inquired about the taxation of hardship allowance arrears received in 2023 and 2024. The DGT ruled that they must be attributed in full to the year they became enforceable (2023) and that the reduction for irregular income may be applied.

The question raised

Taxation in the Personal Income Tax (IRPF) of the aforementioned hardship allowance.

The DGT's ruling

The arrears of the hardship allowance are earnings from employment without exemption, and their temporal imputation is determined by the administrative resolution that recognizes the right. Therefore, they are imputed to the tax period in which said resolution is issued (2023), even if part of the payment is made in 2024 due to causes not attributable to the taxpayer. As they cover a generation period exceeding two years and are imputed in a single fiscal year, they are entitled to the 30% reduction provided for in Article 18.2 of the Personal Income Tax Law.

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