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A worker receiving compensation for voluntary resignation (mutual agreement) over three consecutive years inquired whether they could apply the reduction for irregular income. The Directorate General of Taxes (DGT) ruled that since the income is not attributed to a single tax period, the reduction does not apply.
This ruling limits the tax benefits for employees receiving severance or compensation packages spread across multiple tax years, as the irregularity reduction requires the income to be concentrated in a single period.
The tax team reviews your specific situation.
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