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V1629-17 ·22 June 2017 ·consulta-vinculante Medium impact
Tax

30% reduction for retirement incentives inapplicable without a generation period exceeding two years

A taxpayer inquired whether the retirement economic incentive established in their collective agreement could benefit from the 30% reduction under Article 18.2 of the Personal Income Tax Act (LIRPF). The Directorate General for Taxes (DGT) ruled that this is not applicable because the incentive is linked to the event of retirement rather than the generation of income over a period exceeding two years.

In 6 key points

How it affects those involved

This ruling limits the application of the 30% tax reduction for retirement-related payments, ensuring it is only available for income generated over a period of more than two years, rather than lump-sum incentives tied solely to the act of retiring.

Lifecycle

2017-06-22PublishedPublished 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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