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V1451-25 29 July 2025 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · rendimientos del trabajo

No applicable reduction of 30% for retention bonus or non-competition pact

The consultant asks whether the retention bonus and non-competition compensation may benefit from the 30% reduction under Article 18.2 of the LIRPF. The DGT responds that it does not apply in either case.

The question raised

Taxation of the aforementioned amounts corresponding to the retention bonus in 2024 and those to be received throughout 2025, and whether the 30 percent reduction provided for in Article 18.2 of the LIRPF may be applied.

The DGT's ruling

The retention bonus does not have a vesting period exceeding two years because the right to the amounts is acquired annually. The non-compete compensation does not have a prior vesting period, as it arises upon the termination of the contract. Therefore, the requirements of Article 18.2 of the LIRPF are not met to apply the 30 percent reduction.

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