Doctrine by topic · DGT Observatory

Finality of Judgment: DGT doctrinal evolution

How the DGT's position on this topic has evolved, and the rulings it rests on.

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How the DGT's position has evolved

Settled doctrine High confidence 14 rulings · 2014–2024

Current position

Income derived from judicial rulings, such as litigation wages, pensions, or back pay, is imputed to the tax period in which the judgment becomes final. In the case of back pay with a generation period exceeding two years, the 30% reduction from Article 18.2 of the IRPF Law (Personal Income Tax Law) is applicable. Withholding tax is applied to the total amount of the remuneration paid or credited.

The DGT's position remains constant regarding the imputation of income at the moment the judgment becomes final. The doctrine has specified the application of the reduction for generation periods exceeding two years across various concepts such as pensions or salary supplements. No changes in the imputation criterion are observed, but rather a systematic application to different types of income.

Turning points

19 June 2018 V1776-18

Establishes that back pay is imputed to the period in which it was due if the delay is due to justified circumstances not attributable to the taxpayer, differentiating from the general rule of finality.

Analysis based on 14 of 14 rulings with a stated position. Updated 26 September 2026.

Rulings on this topic

14

V2332-24 11 Nov 2024

Salaries received from other employers are excluded from the calculation of withholding tax on settlement payments

SG de Impuestos sobre la Renta de las Personas Físicas

salarios de tramitaciónimputación temporalretenciónrendimientos del trabajodespido improcedente LIRPF — Ley 35/2006 del IRPF art. 14.1LIRPF — Ley 35/2006 del IRPF art. 14.1.a

Affects CompanyExpat · Non-residentIndividual

V3108-23 28 Nov 2023

Back pay from voided dismissals is attributed to the tax year in which the judgment becomes final

SG de Impuestos sobre la Renta de las Personas Físicas

salarios de tramitaciónimputación temporaldespido nulorendimientos del trabajoretención LIRPF — Ley 35/2006 del IRPF art. 14.1LIRPF — Ley 35/2006 del IRPF art. 17.1

Affects CompanyExpat · Non-residentIndividual

V2247-23 27 Jul 2023

The 30% reduction may be applied to professional career back pay if its generation period exceeds two years

SG de Impuestos sobre la Renta de las Personas Físicas

atrasosimputación temporalrendimientos del trabajoperiodo de generaciónreducción del 30% LIRPF — Ley 35/2006 del IRPF art. 14LIRPF — Ley 35/2006 del IRPF art. 17.1

Affects CompanyExpat · Non-residentIndividual

V1782-21 9 Jun 2021

Pension differences resulting from court rulings are attributed to the year the judgment becomes final

SG de Impuestos sobre la Renta de las Personas Físicas

imputación temporalrendimientos del trabajopensión de jubilaciónfirmeza de sentenciaautoliquidación complementaria LIRPF — Ley 35/2006 del IRPF art. 7.1LIRPF — Ley 35/2006 del IRPF art. 14.1.a

Affects CompanyExpat · Non-residentIndividual

V1760-21 4 Jun 2021

Arrears from a permanent disability pension via court ruling may qualify for the 30% reduction

SG de Impuestos sobre la Renta de las Personas Físicas

atrasosincapacidad permanenteimputación temporalrendimientos del trabajoreducción del 30% LIRPF — Ley 35/2006 del IRPF art. 14.1LIRPF — Ley 35/2006 del IRPF art. 14.2.a)

Affects CompanyExpat · Non-residentIndividual

V1701-21 2 Jun 2021

The 30% reduction for retirement pension arrears recognized by judicial ruling may be applied

SG de Impuestos sobre la Renta de las Personas Físicas

rendimientos del trabajoimputación temporalatrasos de pensiónreducción por irregularidadgastos de defensa jurídica LIRPF — Ley 35/2006 del IRPF art. 14.1LIRPF — Ley 35/2006 del IRPF art. 14.2

Affects CompanyExpat · Non-residentIndividual

V1461-21 18 May 2021

30% IRPF reduction applicable to professional career back pay with a generation period exceeding two years

SG de Impuestos sobre la Renta de las Personas Físicas

imputación temporalrendimientos del trabajoperiodo de generaciónreducción del 30%atrasos LIRPF — Ley 35/2006 del IRPF art. 14.1LIRPF — Ley 35/2006 del IRPF art. 14.2

Affects CompanyExpat · Non-residentIndividual

V1220-21 4 May 2021

Compensation for financial contracts is income from movable capital, while statutory interest is a capital gain

SG de Tributación de las Operaciones Financieras

rendimientos del capital mobiliarioganancia patrimonialbase imponible del ahorrointereses legalesindemnización LIRPF — Ley 35/2006 del IRPF art. 14.1.aLIRPF — Ley 35/2006 del IRPF art. 14.1.c

Affects CompanyExpat · Non-residentIndividual

V2017-18 5 Jul 2018

Temporal attribution of back pay for salary assimilation based on the finality of the court ruling

SG de Impuestos sobre la Renta de las Personas Físicas

imputación temporalrendimientos del trabajoatrasosautoliquidación complementariafirmeza de sentencia LIRPF — Ley 35/2006 del IRPF art. 14LIRPF — Ley 35/2006 del IRPF art. 14.2.b

Affects CompanyExpat · Non-residentIndividual

V1776-18 19 Jun 2018

Temporal allocation of back pay due to salary assimilation: rules based on enforceability and court rulings

SG de Impuestos sobre la Renta de las Personas Físicas

imputación temporalrendimientos del trabajoatrasosautoliquidación complementariaexigibilidad LIRPF — Ley 35/2006 del IRPF art. 14.2.bLIRPF — Ley 35/2006 del IRPF art. 17.1

Affects CompanyExpat · Non-residentIndividual

V1183-18 9 May 2018

Retroactive payments following a court ruling are attributed to the tax year in which the administrative appointment takes effect

SG de Impuestos sobre la Renta de las Personas Físicas

imputación temporalrendimientos del trabajoregularización retributivaperiodo impositivofirmeza de sentencia LIRPF — Ley 35/2006 del IRPF art. 14.2.a)LIRPF — Ley 35/2006 del IRPF art. 17.1

Affects CompanyExpat · Non-residentIndividual

V3116-16 5 Jul 2016

Late payment interest on Income Tax refunds is recognised in the year the court ruling becomes final

SG de Impuestos sobre las Personas Jurídicas

imputación temporaldevengointereses de demoraingreso financierofirmeza de sentencia TRLIS — RDLeg 4/2004 (derogado por la Ley 27/2014) art. 10.3TRLIS — RDLeg 4/2004 (derogado por la Ley 27/2014) art. 14.1.b

Affects CompanyExpat · Non-residentIndividual

V0269-15 23 Jan 2015

Income from the transfer of assets following a judicial ruling must be attributed to the fiscal year in which the ruling becomes final

SG de Impuestos sobre las Personas Jurídicas

hecho imponiblebase imponibledevengoimputación temporaltransmisión de bienes LIS — Ley 27/2014 del Impuesto sobre Sociedades art. 4.1LIS — Ley 27/2014 del Impuesto sobre Sociedades art. 10.1

Affects CompanyExpat · Non-residentIndividual

V2501-14 24 Sept 2014

Back pay from legal proceedings must be attributed to the tax year the court ruling becomes final

SG de Impuestos sobre la Renta de las Personas Físicas

salarios de tramitaciónimputación temporalrendimientos del trabajoatrasosfirmeza de sentencia LIRPF — Ley 35/2006 del IRPF art. 14.2.aLIRPF — Ley 35/2006 del IRPF art. 17.1

Affects CompanyExpat · Non-residentIndividual

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