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A company inquired whether a compensatory payment for a temporary salary reduction could benefit from the 30% reduction applied to notoriously irregular earnings. The Directorate-General for Life and Security (DGT) ruled that such a reduction is not applicable.
This ruling clarifies that compensatory payments intended to offset salary reductions do not qualify for the tax reduction reserved for irregular income, limiting tax relief options for such specific payments.
The tax team reviews your specific situation.
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