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V1296-19 6 June 2019 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · rendimientos del trabajo

30% reduction inapplicable if generation period is less than two years

A taxpayer inquired whether the reduction under Article 18.2 of the Personal Income Tax Law (LIRPF) could be applied to unemployment benefits received following a court ruling. The Directorate General for Taxes (DGT) ruled that it is not applicable because the generation period is less than two years.

The question raised

Application of the reduction under Article 18.2 of Law 35/2006.

The DGT's ruling

Unemployment benefits do not qualify as income obtained in a notoriously irregular manner over time. To apply the 30% reduction, there must be a generation period exceeding two years, which is not the case here as the period is less than two years. The delay in payment by the administration does not increase said generation period.

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