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New guides on the latest Spanish tax and immigration developments.
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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 this is possible if received in a single payment and is classified as income obtained in a notoriously irregular manner.
This ruling provides clarity for taxpayers receiving lump-sum compensations, potentially reducing their tax burden through the application of the irregularity reduction.
The tax team reviews your specific situation.
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