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V1843-19 16 July 2019 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · rendimientos del trabajo

30% reduction not applicable to performance or profit-sharing bonuses lacking a generation period exceeding two years or irregular nature

A taxpayer inquired whether a bonus based on profit-sharing and performance, intended for long-term employees, qualifies for the 30% reduction under Article 18.2 of the Personal Income Tax Act (LIRPF). The Directorate General for Taxes (DGT) ruled that it is not applicable, as such payments are not considered irregular income nor do they have a generation period exceeding two years.

The question raised

Cuestión planteada Si a dicha bonificación le es aplicable la reducción del 30 por ciento prevista en el artículo 18.2 de la Ley del Impuesto sobre la Renta de las Personas Físicas.

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