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V1844-25 14 October 2025 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · rendimientos del trabajo

30% reduction for payment irregularity applies only if income is attributed to a single tax period

The consultant asked whether a 30% reduction for irregularity could be applied to a 500,000 euro compensation received through mutual agreement termination of employment, paid over nine years. The DGT responds that it does not apply because the payments are not attributed to a single tax period.

The question raised

Whether the 30 percent reduction provided for in Article 18.2 of the said Tax Law is applicable.

The DGT's ruling

The compensation for termination by mutual agreement is of the nature of employment income and does not benefit from the dismissal exemption. The 30% reduction for income that is notoriously irregular over time is only applicable when such income is imputed to a single tax period. As the amounts are received in installments over several years, this legal requirement is not met.

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