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V0320-17 ·7 February 2017 ·consulta-vinculante Medium impact
Tax

30% tax reduction for employment income not applicable if generation period is less than two years

A taxpayer inquired whether salary differences received following a court ruling could qualify for the 30% reduction under Article 18.2 of the Personal Income Tax Act (LIRPF). The Directorate General for Taxes (DGT) ruled that this is not possible because the period during which the income was generated is less than two years.

In 5 key points

How it affects those involved

This ruling limits the application of tax relief for irregular income, strictly enforcing the requirement that the income must be generated over a period of at least two years.

Lifecycle

2017-02-07PublishedPublished in the BOE
Official text Based on BOE data (boe.es). Information, not advice.

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This analysis is informational only and does not constitute legal advice or create a client-adviser relationship. BM Consulting.
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