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V1075-16 16 March 2016 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · rendimientos del trabajo

There is an annual limit of 300,000 euros for the 40 percent reduction on income from employment

The taxpayer asks whether there is a limit to applying the 40 percent reduction on income from employment with a generation period exceeding two years. The DGT responds that the amount of gross income to which said reduction is applied cannot exceed 300,000 euros per year.

The question raised

Question posed: Whether there is any limit to the application of said reduction.

The DGT's ruling

For gross income with a generation period exceeding two years that is not obtained periodically or recurrently, a 40 percent reduction is applied. The amount of gross income to which this reduction is applied is subject to a limit of 300,000 euros per year.

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