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A former bank employee enquired whether replacing a monthly supplement with a single or staggered payment allows for the 30% reduction under Article 18.2 of the Personal Income Tax Act (LIRPF). The Directorate General for Taxes (DGT) ruled that the reduction applies only if the compensation is attributed to a single tax period.
This ruling clarifies the requirements for applying the tax reduction on irregular income, specifically emphasizing that the compensation must be accounted for within a single tax year to qualify.
The tax team reviews your specific situation.
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