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V2025-24 23 September 2024 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · rendimientos del trabajo

Additional early retirement payments do not qualify for the 30 per cent reduction

A worker enquired whether additional payments received from their employer upon taking early retirement could benefit from the reduction for irregular income. The DGT has ruled that these amounts do not qualify as income obtained in a notoriously irregular manner.

The question raised

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

The DGT's ruling

The additional amounts paid by the company in the event of cost recovery under a special agreement are not considered income with a generation period exceeding two years, nor are they income obtained in a notoriously irregular manner. Therefore, the 30 percent reduction provided for in Article 18.2 of the Personal Income Tax Law (LIRPF) is not applicable. Likewise, the exemption for severance pay under Article 7 e) of the LIRPF does not apply.

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