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V1771-18 19 June 2018 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · rendimientos del trabajo

30% reduction for income with a generation period exceeding two years is not applicable

A query was raised regarding whether the payment of 2017 salaries, intended to compensate for a 2013 salary reduction, allows for the application of the reduction under Article 18.2 of the Personal Income Tax Law (LIRPF). The Directorate General for Taxes (DGT) ruled that it is not applicable because there is no generation period exceeding two years.

The question raised

Application of the reduction under Article 18.2 of Law 35/2006.

The DGT's ruling

The amount does not qualify as income notoriously irregular in time according to the IRPF Regulations. Furthermore, there is no generation period exceeding two years, as the right to receive it arises with the payment instructions of 2017 and its temporal extension is only four months. Therefore, the 30% reduction under Article 18.2 of Law 35/2006 is not applicable.

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