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V1719-22 18 July 2022 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · rendimientos del trabajo

30% tax reduction applicable if the period between granting and exercising options exceeds two years

The inquirer asks whether the calculation for the 30% tax reduction on income with a generation period exceeding two years begins from the granting of stock options. The DGT rules that the generation period is determined by the time elapsed between the granting of the rights and their exercise.

The question raised

Whether, for the purposes of applying the 30 percent reduction under Article 18.2 of the LIRPF, the generation period of the employment income obtained at the time of exercise is computed from the moment of their granting.

The DGT's ruling

To apply the reduction provided in Article 18.2 of the LIRPF, the period between the granting of stock options to the employee and their exercise must exceed two years. Likewise, the taxpayer must not have applied this reduction to other income with a generation period exceeding two years in the five previous tax periods.

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