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New guides on the latest Spanish tax and immigration developments.
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A former employee inquired whether a company's offer to replace an annual compensation with a single lump sum allows for the 40% tax reduction. The Directorate General for Taxes (DGT) ruled that it is applicable, provided the payment is attributed to a single tax period.
This ruling clarifies the criteria for applying the tax reduction on irregular income, specifically regarding the replacement of recurring salary supplements with lump-sum payments.
The tax team reviews your specific situation.
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