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V0355-19 19 February 2019 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · imputación temporal

Functionary status bonus does not qualify for the 30% reduction for income generated over two years

A university professor inquired whether the bonus for transitioning from contract staff to permanent staff should be taxed in the year it is received and if the reduction for irregular income can be applied. The DGT ruled that it must be taxed when it becomes due and that the 30% reduction is not applicable.

The question raised

Taxation of the award under Personal Income Tax.

The DGT's ruling

The award must be attributed to the tax period in which it becomes due, which is when the position of tenured professor is obtained. The 30% reduction provided in Article 18.2 of the Personal Income Tax Law is not applicable because there is no generation period exceeding two years. The award is established by virtue of acquiring the status of civil servant, without any prior generation of the incentive.

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