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V4941-16 15 November 2016 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · imputación temporal

2015 back pay must be declared via a supplementary tax return for the 2015 tax year

An employee asks how to declare back pay received in 2016 that relates to the years 2015 and 2012. The Directorate General of Taxes (DGT) rules that payments relating to 2015 must be attributed to the 2015 tax year through a supplementary tax return, whereas payments relating to 2012 are declared in 2016 as they become due at that time.

The question raised

How should said back pay be declared in the 2016 Personal Income Tax (IRPF) return, given that the company paid them in 2016, and in the withholding certificate for IRPF provided by the company for the year 2016, they are included as income for said year, without specifying them as arrears in the corresponding section of the certificate.

The DGT's ruling

Income from employment is attributed to the period in which it becomes due. If arrears from 2015 are received in 2016 due to circumstances not attributable to the taxpayer, they must be included in a supplementary tax return for the 2015 fiscal year, without penalties or interest. Conversely, amounts from the 2012 extraordinary payment, the due date of which arises by regulatory provision in 2016, must be included in the 2016 tax return. The withholding certificate must itemize the amounts and withholdings for each corresponding tax period.

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