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A company has requested clarification on whether a retention bonus, agreed upon to ensure a team's continuity over three years, qualifies for the 30% tax reduction applicable to irregular income. The Directorate General for Taxes (DGT) has ruled that it is not applicable, as it does not meet the specific criteria for income that is considered notoriously irregular.
This ruling limits the tax benefits available for long-term incentive schemes, as retention bonuses will not be treated as irregular income for personal income tax (IRPF) purposes.
The tax team reviews your specific situation.
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