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V2732-23 ·6 October 2023 ·consulta-vinculante Medium impact
Tax

30% tax reduction for employment income inapplicable if generation period is less than two years

An employee inquired whether a retention bonus, contingent on remaining with the company until March 2023, qualifies for the 30% reduction under Article 18.2 of the Personal Income Tax Act (LIRPF). The Directorate General for Taxes (DGT) ruled that it is not applicable because the generation period does not exceed two years.

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2023-10-06PublishedPublished 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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