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V1572-18 7 June 2018 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · rendimientos del trabajo

30% reduction for notoriously irregular income may apply even if previous reductions were claimed

A taxpayer inquired whether the 30% reduction could be applied to compensation received for the removal of social benefits. The DGT ruled that it is applicable, as the limitation regarding reductions applied in the previous five years only affects income with a generation period exceeding two years, not notoriously irregular income.

The question raised

Application of the 30 percent reduction under Article 18.2 of Law 35/2006 to compensatory indemnity, based on its classification as notoriously irregular income.

The DGT's ruling

The 30% reduction provided in Article 18.2 of the Personal Income Tax Law (LIRPF) is applicable to compensation for changes in working conditions classified as notoriously irregular income. The limitation preventing the application of the reduction if similar income has been received in the previous five years applies exclusively to income with a generation period exceeding two years. Therefore, notoriously irregular income is not subject to that periodicity restriction.

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