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A pensioner inquired whether compensation for the removal of a lifelong monthly supplement allows for the application of the reduction under Article 18.2 of the Personal Income Tax Act (LIRPF). The Directorate General for Taxes (DGT) ruled that it is applicable if the income is obtained in a notoriously irregular manner and is attributed to a single tax period.
This ruling clarifies the criteria for applying tax relief on irregular income, specifically regarding lump-sum compensations for lost benefits, provided they meet the requirements of irregularity and single-period attribution.
The tax team reviews your specific situation.
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