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V3427-19 13 December 2019 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · rendimientos del trabajo

Remuneration recognized by judicial ruling is taxed as income from employment in the year it becomes final

A City Council inquires regarding the taxation and withholding of salaries not received between 2013 and 2018 following a judicial ruling. The DGT clarifies that these amounts constitute income from employment and must be attributed to the tax year in which the ruling becomes final.

The question raised

Taxation of remuneration recognized by judicial ruling, withholdings.

The DGT's ruling

Amounts for remuneration recognized judicially are income from employment. They are attributed to the tax period in which the ruling becomes final. If the amount covers a generation period exceeding two years, the 30 percent reduction provided in Article 18.2 of the LIRPF is applicable. For the payment of arrears, a withholding rate of 15 percent must be applied to the gross amount.

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