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V1759-21 4 June 2021 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · rendimientos del trabajo

The 30% reduction in Personal Income Tax (IRPF) may be applied to professional career back pay with a generation period exceeding two years

An interim civil servant received professional career back pay corresponding to the years 2015 to 2019. The DGT determines that these earnings must be attributed to the tax year in which they became due and that they may qualify for the 30% reduction if legal requirements are met.

The question raised

Taxation of the aforementioned back pay in Personal Income Tax (IRPF): application of the reduction under Article 18.2 of Law 35/2006.

The DGT's ruling

Back pay must be attributed to the tax period in which it becomes due, as determined by the administrative resolution of recognition. Since it is received in a period different from its due date due to circumstances not attributable to the taxpayer, a supplementary tax return for the corresponding year is required. The 30% reduction is applicable if the generation period exceeds two years and no other similar reductions have been applied in the previous five tax periods.

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