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V0608-22 23 March 2022 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · rendimientos de actividades económicas

30% reduction applicable to income from services with a generation period exceeding two years if non-recurring

A legal representative has enquired whether a 30% reduction can be applied to an amount received for professional services. The Directorate-General for Taxes (DGT) has ruled that this reduction applies only to the portion of fees corresponding to services with a generation period of more than two years, provided that the income is not obtained on a regular or habitual basis.

The question raised

Application to the amount received of the 30 percent reduction established in the Tax Law.

The DGT's ruling

The 30% reduction is applicable to net income with a generation period exceeding two years, provided that it is imputed to a single tax period and does not exceed 300,000 euros annually. It shall not apply if the income derives from an economic activity obtained on a regular or habitual basis. To determine regularity, attention must be paid to the nature of the income specific to each taxpayer and not to professional activity in the abstract. If the case is isolated and not regular, the reduction is applicable.

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