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A notary has requested clarification on how to calculate the average workforce for the personal income tax (IRPF) reduction under the twenty-seventh additional provision, following compulsory retirement in the first quarter of 2013. The Directorate-General for Taxes (DGT) ruled that the calculation must be based on the duration of the employment relationship relative to the total number of days in the tax year.
This ruling clarifies the methodology for calculating the average workforce for tax reduction purposes, ensuring that the duration of employment is proportionally weighted against the full tax period.
The tax team reviews your specific situation.
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