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V1774-18 19 June 2018 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · rendimientos del trabajo

30% reduction for irregular income may apply to payments for the removal of supplements

A taxpayer has enquired whether the 30% reduction provided for in Article 18.2 of the Personal Income Tax Act (LIRPF) can be applied to a lump-sum payment received due to the removal of a lifelong salary supplement. The Directorate General for Taxes (DGT) has ruled that it is applicable, provided it is attributed to a single tax period, as it qualifies as income that is notably irregular.

The question raised

Application of the 30 percent reduction of Article 18.2 of Law 35/2006 to compensatory payments, taking into account that in 2014, the taxpayer included in their personal income tax return certain income from employment (seniority bonus) to which the reduction was applied.

The DGT's ruling

Compensation for the suppression of salary supplements of indefinite duration is considered income from employment obtained in a notoriously irregular manner over time. Therefore, the 30% reduction provided for in Article 18.2 of Law 35/2006 is applicable, provided that it is imputed to a single tax period. This application is not affected by having previously applied the reduction to other income with a generation period exceeding two years.

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