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V1307-20 7 May 2020 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · rendimientos del trabajo

30% irregularity reduction applicable if compensation is attributed to a single tax period

A pensioner inquired whether the 30% reduction for irregular income could be applied when receiving a lump-sum compensation for the removal of a monthly supplement. The Directorate General for Taxes (DGT) ruled that this is possible, provided the payment is attributed to a single tax year and is not paid in instalments.

The question raised

Upon the entity proposing the substitution of the monthly supplement with a single payment or one split into up to five annual installments, the question arises regarding the application of the reduction under Article 18.2 of Law 35/2006, taking into account that in 2018 a reduction was applied to a partial redemption of a personal pension plan.

The DGT's ruling

Compensation for the suppression of salary supplements or indefinite-term pensions is considered income from work obtained in a notoriously irregular manner. To apply the 30% reduction under Article 18.2 of the LIRPF, the amount must be imputed to a single tax period. This reduction is applicable regardless of whether the same was applied in the previous five years, as that limitation only affects income with a generation period exceeding two years.

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