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V1837-25 13 October 2025 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · rendimientos del trabajo

Monthly compensation under mutual agreement not exempt or reducible for irregularity

A worker asks whether monthly compensation from an incentivised leave plan (mutual agreement) can be treated as irregular income. The DGT replies that it is not exempt as it is not a dismissal and that the 30% reduction cannot apply because payments are not attributable to a single tax period.

The question raised

Whether the compensation received can be considered irregular income for Personal Income Tax purposes.

The DGT's ruling

The compensation for termination by mutual agreement is of the nature of income from employment and does not benefit from the exemption provided in Article 7 e) of the LIRPF. Although these amounts are considered income obtained in a notoriously irregular manner according to the Regulations, the 30% reduction of Article 18.2 of the LIRPF is only applicable if they are imputed to a single tax period. As they are received monthly over 4.8 years, this requirement is not met.

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