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V1781-18 19 June 2018 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · imputación temporal

Wage differences from settlement agreements are attributed to the period when the court order becomes final

A worker received payments in 2018 for wage differences from previous years following a settlement agreement. The DGT ruled that arrears must be attributed to the period in which the court order approving the agreement becomes final, and analysed the application of the reduction for irregularity.

The question raised

Temporal imputation and applicable withholding.

The DGT's ruling

Income from employment pending judicial resolution is imputed to the tax period in which the resolution becomes final. Salary differences from the beginning of the claimed period until the date of the court order approving the settlement are imputed to the fiscal year in which said order becomes final. Differences occurring after the date of the order are imputed to the fiscal year in which they would have been due according to the general rule. For the amount imputed to the year of finality, the 30% reduction applies if the period of generation exceeds two years.

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