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V2761-20 10 September 2020 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · atrasos

Arrears from a disability pension via court ruling are attributed to the year the judgment becomes final

The taxpayer received arrears from their permanent disability pension following a court ruling. The DGT determines that this income must be taxed in the year the judgment becomes final and analyses whether any reduction for irregularity applies.

The question raised

Taxation under the IRPF of the aforementioned "arrears".

The DGT's ruling

Arrears in Social Security benefits resulting from a judicial ruling are attributed to the tax period in which the resolution becomes final. Following the TEAC, it is possible to apply the 30% reduction provided in Article 18.2 of the IRPF Law to public pensions if the ruling covers more than two years of accrual. However, the reduction under paragraph 3 of Article 18 is not applicable because the pensions are not received as a lump sum, nor is the reduction under paragraph 2 applicable on the grounds of regulatory irregularity.

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