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A company enquired whether an extraordinary bonus programme for executives (2013-2015) qualifies for the 40% reduction under Article 18.2 of the IRPF Act. The Directorate General for Taxes (DGT) ruled that it is applicable, provided the income has a generation period exceeding two years and is not obtained on a periodic or recurring basis.
This ruling clarifies the criteria for applying tax reductions to non-standard bonus schemes, specifically focusing on the duration of the generation period and the absence of regularity.
The tax team reviews your specific situation.
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