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V1573-16 ·13 April 2016 ·consulta-vinculante Medium impact
Tax

30% reduction applicable to seniority bonuses with a generation period exceeding two years

A query was raised regarding whether a seniority bonus for 30 years of service qualifies for the 30% reduction under Article 18.2 of the IRPF Act. The Directorate-General for Tax (DGT) ruled that it is applicable, as the bonus is considered to have a generation period exceeding two years.

In 5 key points

How it affects those involved

This ruling provides legal certainty for taxpayers and employers regarding the tax treatment of long-service bonuses, confirming that such payments can benefit from the 30% reduction if they accrue over a period longer than two years.

Lifecycle

2016-04-13PublishedPublished in the BOE
Official text Based on BOE data (boe.es). Information, not advice.

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This analysis is informational only and does not constitute legal advice or create a client-adviser relationship. BM Consulting.
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