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V1161-20 ·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 replacing a monthly supplement with a lump sum or staggered payments 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 the reduction is applicable provided the compensation is attributed to a single tax period.

In 6 key points

How it affects those involved

This ruling clarifies the conditions under which lump-sum payments of regular supplements can qualify for the 30% tax reduction for irregular income, provided they are recorded within a single tax year.

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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