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V0519-22 14 March 2022 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · reducción del 30%

30% tax reduction applicable to salary supplements with a generation period exceeding two years

An employee inquired whether a triennial bonus stipulated in their collective agreement could benefit from the 30% reduction under Article 18.2 of the Personal Income Tax Act (LIRPF). The Directorate General for Taxes (DGT) ruled that it is applicable, provided certain seniority and periodicity requirements are met.

The question raised

Whether the 30 percent reduction provided for in Article 18.2 of the Personal Income Tax Law is applicable to said salary supplement.

The DGT's ruling

To apply the 30% reduction, the yield must have a generation period exceeding two years. This requires that the yield be linked to a period of seniority in the company of at least said period and that the collective agreement or contract establishing it also exceeds two years. Furthermore, the supplement must be imputed in a single tax period and the taxpayer must not have applied this reduction to other similar yields in the previous five tax periods.

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