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A taxpayer inquired whether they could apply the 30% reduction to compensation received for the removal of social benefits. The DGT ruled that this is possible, as the limitation regarding the use of the reduction within the previous five years only applies to income with a generation period exceeding two years, not to notoriously irregular income.
This ruling clarifies that taxpayers receiving compensation for changes in working conditions can access the 30% tax reduction for irregular income without being barred by the five-year rule, provided the income is classified as notoriously irregular.
The tax team reviews your specific situation.
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