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V0636-20 31 March 2020 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · rendimientos del trabajo

The 30% irregularity reduction requires imputation in a single period or to be a redundancy payment

A query was raised regarding whether the 30% reduction for employment income generated over more than two years and paid in instalments over four years is applicable. The DGT ruled that it depends on the nature of the income and how it is imputed.

The question raised

Whether the 30 percent reduction provided for in Article 18.2 of the LIRPF is applicable to employment income with a generation period exceeding two years that is received in installments over 4 years.

The DGT's ruling

If the income is not compensation for termination of the employment relationship, the 30% reduction does not apply because it is not imputed to a single tax period. If it is compensation for termination of the employment relationship, the reduction shall be applicable provided that the quotient between the years of generation and the years of fragmentation is greater than two.

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