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V0580-16 11 February 2016 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · reducción del 30 por ciento

Requirements for the application of the 30% reduction for income with a generation period exceeding two years

A company has enquired whether a multi-year bonus payable in 2016 can qualify for the 30% reduction provided for in Article 18.2 of the Personal Income Tax Act (LIRPF). The Directorate General for Taxes (DGT) rules that this is possible provided the income relates to a generation period exceeding two years, is attributed to a single tax period, and the reduction has not been applied in the previous five years.

The question raised

Question raised: Application of the 30 percent reduction provided for in Article 18.2 of the Personal Income Tax Law to the share delivery plan corresponding to the period from July 1, 2013, to June 30, 2016, to be paid in 2016, and to the payment of the multi-year bonus whose payment will also take place in 2016, corresponding to the period from February 1, 2013, to January 31, 2016, and application of the 300,000 euro limit established in said article.

The DGT's ruling

Para aplicar la reducción del 30% sobre rendimientos del trabajo, estos deben tener un período de generación superior a dos años e imputarse en un único período impositivo. Asimismo, el contribuyente no debe haber aplicado esta reducción a otros rendimientos con período de generación superior a dos años en los cinco períodos impositivos anteriores. La cuantía sobre la que se aplica la reducción no puede superar los 300.000 euros anuales. Para el cálculo de la retención, el pagador debe considerar los rendimientos a los que se aplicó la reducción en los cinco años anteriores, salvo comunicación en contrario del trabajador.

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What is published here, applied to a company or a specific case. The first meeting is free.

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