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V2619-23 ·27 September 2023 ·consulta-vinculante Medium impact
Tax

30% reduction applicable to lump-sum delayed retirement bonuses

A query was raised regarding whether the financial compensation for delaying retirement, received as a lump sum, qualifies for the 30% reduction under Article 18.3 of the Personal Income Tax Act (LIRPF). The Directorate General for Taxes (DGT) has ruled that this reduction is indeed applicable to lump-sum payments.

In 6 key points

How it affects those involved

Taxpayers receiving lump-sum payments for delaying their retirement age can benefit from a 30% reduction on the taxable amount, reducing their overall tax burden.

Lifecycle

2023-09-27PublishedPublished 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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