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V0356-22 24 February 2022 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · rendimientos del trabajo

30% reduction applicable to early retirement compensation if two conditions are met

A civil servant has enquired whether early retirement compensation can benefit from the 30% reduction for income with a generation period exceeding two years. The Directorate General for Taxes (DGT) indicates that this is only possible if specific seniority and regulatory requirements are satisfied.

The question raised

Taxation under Personal Income Tax (IRPF).

The DGT's ruling

The 30% reduction is applicable if the income has a generation period exceeding two years and is imputed to a single tax period. To this end, a double condition must be met: that the income is linked to a period of seniority in the company of at least said period and that the agreement or contract establishing it also exceeds two years. Furthermore, this reduction must not have been applied to other similar income in the previous five tax periods.

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