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V3021-23 21 November 2023 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · imputación temporal

Retroactive collective agreement wage increases are attributed to the year they become due

A worker inquired whether a retroactive salary increase from a collective agreement should be taxed in the year to which the economic effects relate or in the year it is received. The DGT ruled that they must be taxed in the year they become due, which in this case is 2023.

The question raised

Temporal imputation in Personal Income Tax (IRPF) of the salary increase received in the September 2023 payroll, corresponding to the period from 1 July 2022 to 30 September 2023.

The DGT's ruling

Employment income is attributed to the tax period in which it becomes due to the recipient. In the case of increases resulting from a collective agreement, exigibility occurs in the year in which the agreement is signed and the payment is established, not in the year to which the economic effects are retroactively applied. Therefore, they must be taxed in the fiscal year in which they are received.

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