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V2532-20 24 July 2020 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · rendimientos del trabajo

The 30% reduction for irregular income may apply even if the reduction for a generation period exceeding two years was previously used

A taxpayer inquired whether they could apply the 30% reduction to a payment received for voluntary termination, having previously applied said reduction in 2019 to a seniority award. The DGT ruled that, as the termination payment constitutes notoriously irregular income rather than income with a generation period exceeding two years, the five-year limitation period does not apply.

The question raised

Whether the 30 percent reduction provided in Article 18.2 of Law 35/2006 is applicable to the amounts received, taking into account that said reduction was also applied to a seniority bonus in 2019.

The DGT's ruling

The 30% reduction for termination of the employment relationship by mutual agreement is applicable if it is imputed to a single tax period. The limitation preventing the application of the reduction if similar income has been received in the previous five years only affects income with a generation period exceeding two years. Since income from severance is classified as being obtained in a notoriously irregular manner, it is not subject to said temporal limitation.

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