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A worker inquired whether financial compensation for a post-contractual non-compete agreement could benefit from the 30% reduction under Article 18.2 of the LIRPF. The Directorate General for Taxes (DGT) ruled that it is not applicable because there is no generation period exceeding two years.
This ruling clarifies that non-compete payments do not qualify for the special tax reduction reserved for irregular income if the underlying period is not sufficiently long.
The tax team reviews your specific situation.
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