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V3233-19 25 November 2019 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · imputación temporal

Back pay from court rulings is attributed to the tax year the judgment becomes final

An interim teacher received back pay for previous years in 2019 following a Supreme Court ruling. The Directorate General of Taxes (DGT) has determined that this income must be taxed in the year the judgment became final, rather than the year the payment was received.

The question raised

Temporal attribution of the "back pay" paid in September 2019.

The DGT's ruling

Income from employment received by judicial resolution must be attributed to the tax period in which the judgment becomes final. If the accumulated amount corresponds to a generation period exceeding two years and is attributed to a single fiscal year, the 30 percent reduction may be applied, provided that similar reductions have not been applied in the five previous periods.

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