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V3098-20 15 October 2020 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · rendimientos del trabajo

30% reduction for irregular income not applicable to salary arrears following judicial ruling

A civil servant has requested clarification on whether salary arrears recognised by a court ruling following reinstatement to service qualify for the reduction for irregular income. The Directorate General of Taxes (DGT) has ruled that this is not applicable, as they do not meet the requirement of a generation period exceeding two years, nor are they formally classified as irregular income under the regulations.

The question raised

Application of the reduction provided for in Article 18.2 of Law 35/2006.

The DGT's ruling

Salary arrears resulting from a judicial ruling must be attributed to the tax period in which the judgment becomes final. The 30% reduction provided for in Article 18.2 of the Personal Income Tax Law (LIRPF) is not applicable because the generation period (January 2019 to September 2020) does not exceed two years. Furthermore, these earnings are not included in the list of cases officially classified by regulation as being obtained in a notoriously irregular manner over time.

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