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V2555-23 25 September 2023 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · imputación temporal

Back pay for professional career progression is attributed to the year of resolution, and the 30% reduction is an irrevocable option

A doctor has enquired about the temporal attribution of back pay for professional career progression received in 2023, and whether it is possible to rectify a 30% reduction applied in 2020 to use it in 2022. The Directorate General of Taxes (DGT) has determined that back pay is attributed to the year of the administrative resolution and that the choice to apply the reduction is an option that cannot be rectified once the regulatory period has elapsed.

The question raised

Taxation under Personal Income Tax (IRPF).

The DGT's ruling

Back pay for professional career advancement is imputed to the tax period in which it becomes due, as determined by the administrative resolution recognizing it. The 30% reduction for a generation period exceeding two years is optional. The exercise of this reduction constitutes a tax option which, according to the General Tax Law, cannot be rectified after its submission, except within the regulatory declaration period.

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