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V1579-24 1 July 2024 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · autónomo económicamente dependiente

30% reduction not applicable to compensation for termination of dependent freelancer contracts

An economically dependent freelancer inquired whether a €50,000 compensation payment for contract termination could benefit from the reduction for irregular income. The Directorate General for Taxes (DGT) has ruled that this reduction is not applicable.

The question raised

Application of the 30 percent reduction of Article 32.1 of Law 35/2006 to the compensation.

The DGT's ruling

The compensation does not have a generation period exceeding two years as it arises ex novo from the contractual rescission. It also does not qualify as income obtained in a notoriously irregular manner, as it does not derive from the cessation of activity nor does it substitute economic rights of indefinite duration. Therefore, the 30% reduction provided for in Article 32.1 of Law 35/2006 is not applicable.

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