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V3238-23 13 December 2023 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · imputación temporal

Arrears in employment income are attributed to the tax year in which the judicial ruling becomes final

A query was raised regarding when salary arrears resulting from a judicial ruling should be taxed and which withholding rate to apply. The DGT determines that they must be attributed to the tax year in which the judgment becomes final and a 15% withholding rate should be applied.

The question raised

Temporal attribution of arrears from employment income and the applicable withholding tax.

The DGT's ruling

Income from employment is attributed to the period in which it becomes due, but if the amount depends on a judicial ruling, it is attributed to the period in which said ruling becomes final. In this case, as these are arrears from 2022 with a final judgment in that same year, the attribution corresponds to the 2022 tax year. A 15% withholding tax shall apply to these amounts as they constitute arrears from previous tax years.

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