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V3043-19 29 October 2019 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · imputación temporal

30% reduction applies to income with a generation period exceeding two years imputed in a single period

A teacher received back payments for the period 2012–2015 in 2019 following court rulings. The Tax Agency has determined that this income must be taxed in 2018 and is eligible for the reduction for irregularity in time.

The question raised

Temporal attribution and application of the reduction under Article 18.2 of the Personal Income Tax Law.

The DGT's ruling

Amounts received through court rulings must be attributed to the tax period in which the resolution becomes final. As these are earnings with a generation period exceeding two years attributed to a single period, the 30% reduction under Article 18.2 of the Personal Income Tax Law is applicable. To apply this reduction, similar benefits must not have been applied in the five previous tax periods.

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