Skip to content
V0525-17 ·2 March 2017 ·consulta-vinculante Medium impact
Tax

30% reduction cannot be applied to compensation for termination of a service contract

A taxpayer inquired whether the 30% reduction for irregular income could be applied to compensation received following the termination of a service contract. The Directorate General for Taxes (DGT) ruled that it is not applicable, neither due to irregularity in time nor the period of generation.

In 5 key points

How it affects those involved

This ruling clarifies that compensation for contract termination does not qualify for the tax reduction intended for irregular income from economic activities.

Lifecycle

2017-03-02PublishedPublished in the BOE
Official text Based on BOE data (boe.es). Information, not advice.

Does this provision affect you?

The tax team reviews your specific situation.

Talk to the tax team
This analysis is informational only and does not constitute legal advice or create a client-adviser relationship. BM Consulting.
Email
Contact