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A query was raised regarding whether the payment of the December 2012 extraordinary bonus, agreed upon in 2014, allows for the application of the 40% reduction. The Directorate-General for Tax (DGT) ruled that it is not applicable because the income arises from a new event (the negotiation agreement) and does not have a generation period exceeding two years.
This ruling limits the ability to apply tax reductions for irregular income to payments resulting from new settlement agreements, even if they relate to past periods.
The tax team reviews your specific situation.
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