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V0724-15 6 March 2015 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · rendimientos del trabajo

40% reduction for retirement incentives cannot be applied if the ratio of generation period to number of payments is less than two

A teacher inquired whether the 40% reduction on employment income could be applied to a voluntary retirement incentive paid in five instalments. The Directorate General for Taxes (DGT) ruled that, because it is paid in instalments, the mathematical requirement set out in the Regulations to apply said reduction is not met.

The question raised

Cuestión planteada Aplicación al incentivo de la reducción del 40 por ciento prevista en el artículo 18.2.a) de la Ley del Impuesto sobre la Renta de las Personas Físicas.

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