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V0626-22 24 March 2022 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · rendimientos netos

30% reduction for professional income may apply if not earned on a regular or habitual basis

A lawyer inquired whether the 30% reduction could be applied to income generated over more than two years due to the duration of litigation. The DGT ruled that the reduction is applicable provided the professional does not obtain this type of income on a regular or habitual basis within their economic activity.

The question raised

Given that these procedures have an average duration of three and a half years, it is asked whether the 30 percent reduction provided in Article 32.1 of Law 35/2006 is applicable.

The DGT's ruling

To apply the reduction provided in Article 32.1 of the Personal Income Tax Law (LIRPF), the earnings must have a generation period exceeding two years and must not be habitual. Regularity or habituality must be assessed based on the individual income of the taxpayer and not on the professional activity in the abstract. If the obtaining of these earnings is regular or habitual for the professional, the reduction is not applicable.

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