Skip to content
Back to index
V1645-18 12 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 previously used for other income

A taxpayer inquired whether the 30% reduction could be applied to compensation received for the loss of social benefits. The Tax Agency confirmed it is applicable as it constitutes notoriously irregular income, regardless of whether the reduction has been previously applied to other types of income.

The question raised

Application of the 30 percent reduction of Article 18.2 of Law 35/2006 to compensatory indemnity from its consideration as notoriously irregular income.

The DGT's ruling

The 30% reduction for notoriously irregular income is applicable if it is imputed to a single tax period. The limitation of not applying the reduction if other income has been received in the previous five years only affects income with a generation period exceeding two years, not those regulatedly classified as notoriously irregular.

Book your free first meeting