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A worker inquired whether the 30% reduction for irregular income could be applied to a relocation allowance paid in three annual instalments. The Directorate General for Taxes (DGT) ruled that, although it constitutes irregular income, the reduction cannot be applied because the income is not imputed to a single tax period.
This ruling limits the tax benefits for relocation allowances that are structured as multi-year payments, as the 30% reduction requires the income to be recognised within a single tax year.
The tax team reviews your specific situation.
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