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V1134-20 ·29 April 2020 ·consulta-vinculante Medium impact
Tax

30% reduction for irregular income may apply if compensation is attributed to a single period

A pensioner inquired whether the 30% reduction for irregular income could be applied when receiving compensation for the removal of a monthly supplement. The Directorate General for Taxes (DGT) ruled that this is possible provided the payment is made in a single lump sum rather than in instalments.

In 6 key points

How it affects those involved

This ruling clarifies the criteria for applying tax relief on irregular income, specifically confirming that lump-sum compensation for lost benefits qualifies for the reduction.

Lifecycle

2020-04-29PublishedPublished 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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