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V2415-19 13 September 2019 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · imputación temporal

Judicially recognised pay differences are attributed to the year the ruling becomes final

A civil servant has enquired as to when salary differences recognised by a court ruling covering several years must be declared. The Directorate-General for Taxes (DGT) has responded that these are attributed to the tax year in which the ruling becomes final and that the reduction for irregularity may apply.

The question raised

Temporal imputation and application of the reduction under Article 18.2 of Law 35/2006.

The DGT's ruling

When the amount of income depends on a pending judicial ruling, the amounts are imputed to the tax period in which the ruling becomes final. If these incomes have a generation period exceeding two years and are imputed in a single period, the 30 percent reduction may apply, provided that said reduction has not been applied in the previous five tax periods and they do not exceed 300,000 euros annually.

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