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V0036-23 16 January 2023 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · jubilación demorada

30% reduction applicable to lump-sum payment for delayed retirement

A query was raised regarding whether the financial compensation for delaying the retirement age, received as a lump sum, is eligible for the 30% reduction under Article 18.3 of the Personal Income Tax Act (LIRPF). The Directorate General for Taxes (DGT) has ruled that this reduction is indeed applicable to such lump-sum supplements.

The question raised

Whether receipt in the single payment modality may benefit from the reduction established in Article 18.3 of Law 35/2006.

The DGT's ruling

The economic supplement for delayed retirement, consisting of a lump sum under Article 210.2.b) of the TRLGSS, is classified as income from employment. Therefore, the 30 percent reduction provided for in Article 18.3 of the IRPF Law is applicable when received as a lump sum payment.

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