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V0999-20 ·22 April 2020 ·consulta-vinculante Medium impact
Tax

30% reduction may apply to 40-year service award subject to specific requirements

A municipal employee inquired whether the 40-year service award qualifies for the 30% reduction for income generated over a period exceeding two years. The Directorate-General for Taxes (DGT) ruled that it is applicable provided the minimum period of service is met and the collective agreement regulating the award has been in effect for more than two years.

In 6 key points

How it affects those involved

This ruling clarifies the eligibility for tax reductions on long-service awards, specifically regarding the multi-year generation period requirement.

Lifecycle

2020-04-22PublishedPublished 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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