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V5029-16 18 November 2016 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · imputación temporal

Payments of benefits accrued in the previous year are attributed to the year in which they become due

A query was raised regarding when benefits accrued in the previous year but paid in the early months of the current year should be taxed. The DGT ruled that attribution depends on when the payment becomes due and that, if considered arrears, a 15% withholding tax rate applies.

The question raised

Temporal attribution corresponding to payments made in the first three months for benefits accrued in the previous year. - Date from which the payment of benefits accrued in the previous year would be considered arrears.

The DGT's ruling

Income from employment is attributed to the tax period in which it becomes due for the recipient. If the due date coincides with the year in which the right was generated, it is attributed to that year; if the due date is in a subsequent period, it is attributed to that subsequent period. If the payments are considered arrears as they pertain to previous fiscal years, the applicable withholding rate is 15%.

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