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A university professor inquired whether the bonus for transitioning from contract staff to permanent staff should be taxed in the year it is received and if the reduction for irregular income can be applied. The DGT ruled that it must be taxed when it becomes due and that the 30% reduction is not applicable.
This ruling clarifies that bonuses for achieving permanent status are not considered irregular income for tax purposes, meaning taxpayers cannot benefit from the 30% reduction, and establishes that the tax liability arises when the amount becomes legally due.
The tax team reviews your specific situation.
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