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A taxpayer inquired whether arrears from a temporary disability benefit, awarded via court ruling, qualify for the 40% tax reduction. The Directorate General of Taxes (DGT) ruled that this reduction does not apply, neither as irregular income nor as lump-sum payments.
Taxpayers receiving backdated social security or disability benefits through judicial rulings cannot apply the 40% reduction for irregular income.
The tax team reviews your specific situation.
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