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V1429-18 29 May 2018 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · reducción del 30 por ciento

30% reduction in salary incentives not applicable if generation period is not longer than two years

A taxpayer has filed a legal claim for multi-year production incentives. The DGT is examining whether the 30% reduction under Article 18.2 of the IRPF Law can be applied to amounts received following a court ruling and a settlement agreement.

The question raised

Question raised: Application to the incentive obtained of the thirty percent reduction provided for in Article 18.2 of the Personal Income Tax Law.

The DGT's ruling

The 30% reduction is not applicable to income that does not have a generation period exceeding two years nor is notoriously irregular. For the incentives of 2011 and 2012, the reduction is not applicable due to failure to meet these requirements. Conversely, for the incentives from 2013 to 2017, the 30% reduction is applicable as they have a generation period exceeding two years.

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