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A professional auditor enquired whether compensation received for the termination of a service contract and for non-competition clauses could qualify for the 40% reduction for irregular income. The DGT has ruled that this is not applicable, as the compensation does not arise from the cessation of an economic activity nor does it substitute for economic rights.
This ruling clarifies that compensation for contract termination and non-competition clauses does not qualify for the tax reduction reserved for irregular income, as it does not meet the specific legal criteria regarding the cessation of economic activity.
The tax team reviews your specific situation.
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