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A worker inquired whether a lump-sum payment intended to compensate for the removal of a benefit in kind (electricity subsidy) could qualify for the reduction applicable to irregular income. The Directorate General for Taxes (DGT) ruled that it is not applicable because the income is not imputed to a single tax period.
This ruling clarifies that compensatory payments for lost benefits in kind do not qualify for the 30% tax reduction for irregular income if they do not meet the specific criteria for single-period imputation.
The tax team reviews your specific situation.
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