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A query was raised regarding whether payments made by a company to employees for relocation of the workplace can benefit from the 40% reduction under Article 18.2 of the Personal Income Tax Law (LIRPF). The Directorate General for Taxes (DGT) indicates that these amounts are considered income obtained in a notoriously irregular manner over time, in accordance with the Regulations.
This ruling clarifies the tax treatment of relocation allowances, confirming that they can qualify for a significant tax reduction if they meet the criteria for irregular income.
The tax team reviews your specific situation.
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