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A worker inquired whether compensation received for a post-contractual non-compete agreement is eligible for the 30% tax reduction applicable to income with a generation period exceeding two years. The Directorate-General for Taxes (DGT) ruled that this reduction does not apply.
This ruling clarifies that compensation for non-compete clauses is not subject to the tax reduction for irregular income, even if the generation period exceeds two years.
The tax team reviews your specific situation.
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