Skip to content
Back to index
V0613-17 9 March 2017 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · rendimientos del trabajo

30% reduction not applicable to early retirement incentive

A query was raised regarding whether an economic incentive for early retirement paid by the General Council of the Principality of Asturias allows for the application of the 30% reduction for income with a generation period exceeding two years. The Directorate General of Taxes (DGT) ruled that this reduction is not applicable.

The question raised

Application of the 30 percent reduction provided for in Article 18.2 of the Personal Income Tax Law.

The DGT's ruling

To apply the 30% reduction, the yield must meet two conditions: that the agreement or pact exceeds two years and that the worker has a minimum seniority in the company equal to that period. In this case, as the amount is determined based on the retirement age, the link is with the act of retiring and not with a previous generation of income. Therefore, the requirement of a link to seniority is not met to consider that the generation period is greater than two years.

Book your free first meeting