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V1121-17 10 May 2017 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · rendimientos del trabajo

30% reduction for irregular income cannot be applied to permanent disability pensions

A taxpayer inquired whether the reduction for irregular employment income could be applied to a lump-sum payment received from a permanent disability pension. The Directorate General for Taxes (DGT) has ruled that such a reduction is not applicable.

The question raised

Whether the reduction for irregular employment income under Article 18.2 of the LIRPF is applicable.

The DGT's ruling

The 30% reduction under Article 18.2 of the LIRPF is not applicable because Social Security pensions are excluded from that paragraph. Likewise, the reduction under Article 18.3 is not applicable because the payment does not constitute a lump-sum benefit, but rather an accumulation of monthly payments received at once.

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