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V1308-17 29 May 2017 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · rendimientos del trabajo

30% reduction may apply to seniority bonuses if two conditions are met

A worker enquired whether a bonus for 35 years of service could benefit from the reduction applicable to irregular income. The DGT ruled that this is possible provided the income has a generation period exceeding two years.

The question raised

Personal Income Tax (IRPF) taxation of the prize received.

The DGT's ruling

To apply the 30% reduction, the yield must have a generation period exceeding two years. This requires that the yield be linked to a period of seniority in the company of at least that duration and that the agreement or contract establishing it also exceeds two years. Furthermore, this reduction must not have been applied to other similar yields in the previous five tax periods.

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