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An employee inquired whether an extraordinary bonus linked to the sale of their company could benefit from the 30% reduction under Article 18.2 of the Personal Income Tax Act (LIRPF). The Directorate General for Taxes (DGT) ruled that, as the right to the bonus arose through a new agreement, it is not considered income with a generation period exceeding two years.
The ruling limits the application of tax reductions for irregular income, specifically when bonuses are established through new agreements rather than existing long-term arrangements.
The tax team reviews your specific situation.
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