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A taxpayer inquired whether a lump-sum payment replacing a life annuity from a former employer qualifies for the 30% tax reduction. The Directorate General for Taxes (DGT) ruled that it is applicable, provided the amount is attributed to a single tax period.
This ruling clarifies the eligibility for the 30% reduction on irregular income for employees receiving lump-sum settlements in lieu of life pensions.
The tax team reviews your specific situation.
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