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V1324-19 6 June 2019 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · imputación temporal

Application of the 30% reduction for income with a generation period exceeding two years

A civil servant has requested clarification on whether salary differences recognised by a court after several years of service qualify for the reduction for irregularity. The Directorate-General for Taxes (DGT) responds that such income is attributed to the year in which the judgment becomes final and that the reduction may apply if all legal requirements are met.

The question raised

Application of the reduction under Article 18.2 of Law 35/2006 to the aforementioned remuneration differences.

The DGT's ruling

Income pending judicial resolution is imputed to the tax period in which the judgment becomes final. If these remuneration differences have a generation period exceeding two years and are imputed in a single period, the 30% reduction provided for in Article 18.2 of Law 35/2006 is applicable. To this end, said reduction must not have been applied to other income with a generation period exceeding two years in the previous five tax periods, and the amount must not exceed 300,000 euros annually.

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