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An employee inquired whether a triennial bonus stipulated in their collective agreement 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 it is applicable, provided certain seniority and periodicity requirements are met.
This ruling clarifies the eligibility of long-term bonuses for tax relief, potentially reducing the tax burden for employees receiving periodic supplements that accrue over multiple years.
The tax team reviews your specific situation.
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