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A lawyer inquired whether the reduction for income generated over more than two years could be applied to fees from a 2016 lawsuit collected following an accounting audit procedure. The Directorate General of Taxes (DGT) ruled that this is possible provided the professional does not obtain such income on a regular or habitual basis within their activity.
This ruling clarifies the application of the 30% reduction for long-term income generation to legal professionals, provided the income is non-recurring.
The tax team reviews your specific situation.
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