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V1833-25 13 October 2025 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · rendimientos del trabajo

No reduction of 30% on lump-sum settlement if paid in installments

A worker asks whether a 30% reduction for irregularity can apply to a settlement for termination by mutual agreement to be paid over four years. The DGT replies that the reduction does not apply as the payments are not attributable to a single tax period.

The question raised

Issue raised: Possibility of applying the 30 percent reduction provided for in Article 18.2 of the Personal Income Tax Law.

The DGT's ruling

Amounts resulting from the mutual agreement termination of an employment relationship constitute employment income. The 30% reduction provided for in Article 18.2 of the Personal Income Tax Law (LIRPF) for such income applies only when imputed to a single tax period. As they are received in installments, the requirement of single imputation necessary to apply the reduction is not met.

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