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V0648-17 ·14 March 2017 ·consulta-vinculante Medium impact
Tax

30% reduction for generation exceeding two years cannot be applied to early retirement incentives

A query was raised regarding whether an early retirement financial incentive agreed upon by a local council allows for the application of the 30% reduction under Article 18.2 of the Personal Income Tax Law (LIRPF). The Directorate General of Taxes (DGT) ruled that this reduction is not applicable.

In 5 key points

How it affects those involved

This ruling clarifies that specific early retirement incentives provided by local authorities do not qualify for the tax reduction intended for income generated over more than two years.

Lifecycle

2017-03-14PublishedPublished in the BOE
Official text Based on BOE data (boe.es). Information, not advice.

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This analysis is informational only and does not constitute legal advice or create a client-adviser relationship. BM Consulting.
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