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V0112-24 15 February 2024 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · rendimientos del trabajo

30% reduction for income with generation period or irregularity not applicable

An executive enquired whether a bonus received following the modification of a variable remuneration plan allowed for the 30% reduction under Article 18.2 of the Personal Income Tax Act (LIRPF). The Directorate General for Taxes (DGT) has ruled that it is not applicable as there is no generation period and the requirements for irregularity are not met.

The question raised

Whether the 30 percent reduction provided for in Article 18.2 of the LIRPF is applicable.

The DGT's ruling

The 30% reduction is not applicable because the amount received is a certain amount that arises ex novo and is not linked to a generation period. Furthermore, it does not qualify as income obtained in a notoriously irregular manner, as the amount does not constitute the substitution or repair of a salary supplement of indefinite duration. Therefore, it does not meet the requirements of the cases set forth in Article 18.2 of the LIRPF or its regulations.

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