Skip to content
Back to index
V2874-20 23 September 2020 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · rendimientos del trabajo

Pension arrears awarded by court ruling must be taxed in the year the judgment becomes final

A pensioner received retirement pension arrears for 2016 and 2017 in 2019 following a court ruling. The DGT has determined that these amounts must be attributed to the 2019 tax year and that the 30 per cent reduction is not applicable.

The question raised

Taxation of the aforementioned arrears in Personal Income Tax (IRPF).

The DGT's ruling

Social Security pension arrears received by judicial resolution must be attributed to the tax period in which the judgment becomes final. The 30 percent reduction provided for in Article 18.2 of the Tax Law is not applicable if the generation period is less than two years. Furthermore, the reduction under paragraph 3 is not applicable as they are not received as a lump sum, nor is the reduction under paragraph 2 applicable as they are not officially classified as notoriously irregular income.

Book your free first meeting