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V1152-20 29 April 2020 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · rendimientos del trabajo

30% reduction for irregular income may apply if compensation is attributed to a single tax period

A pensioner inquired whether compensation for the removal of a lifelong monthly supplement allows for the application of the reduction under Article 18.2 of the Personal Income Tax Act (LIRPF). The Directorate General for Taxes (DGT) ruled that it is applicable if the income is obtained in a notoriously irregular manner and is attributed to a single tax period.

The question raised

Upon the entity proposing the substitution of the monthly supplement for a single payment or one split into up to five annuities, it asks about the application of the reduction provided in article 18.2 of Law 35/2006.

The DGT's ruling

Compensation for the suppression of salary supplements or pensions of indefinite duration is considered income obtained in a notoriously irregular manner over time. To apply the 30% reduction, such compensation must be imputed to a single tax period. This reduction is not limited by the rule of the five previous periods, as that exclusion only affects income with a generation period exceeding two years.

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