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New guides on the latest Spanish tax and immigration developments.
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A worker inquired whether the 40% tax reduction could be applied to an additional payment from a retention plan paid in two instalments. The Directorate General for Taxes (DGT) ruled that it is not applicable because the income is received with periodicity or recurrence.
This ruling clarifies that additional payments must meet strict irregularity criteria to qualify for the tax reduction, preventing its application to structured or recurring payments.
The tax team reviews your specific situation.
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