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V1253-23 ·11 May 2023 ·consulta-vinculante Medium impact
Tax

30% Income Tax reduction applicable to business income with a generation period exceeding two years

A taxpayer inquired whether the reduction under Article 32.1 of the Personal Income Tax Law (LIRPF) could be applied following the sale of a mushroom plantation held for 15 years. The Directorate General for Tax (DGT) ruled that the 30% reduction on net income is indeed applicable.

In 5 key points

How it affects those involved

This ruling confirms that long-term business activities qualify for significant tax relief, providing legal certainty for taxpayers selling agricultural or business assets held for extended periods.

Lifecycle

2023-05-11PublishedPublished 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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