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A teacher under the Civil Service Pension Scheme (Clases Pasivas) has enquired whether the lump-sum payment for deferred retirement (lump sum amount) allows for Income Tax (IRPF) reductions. The Directorate-General for Taxes (DGT) has ruled that, as this constitutes employment income received as capital, the 30% reduction provided for in Article 18.3 of the Income Tax Law is applicable.
The tax team reviews your specific situation.
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