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V2571-17 10 October 2017 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · rendimientos del trabajo

30% reduction for income with a generation period exceeding two years cannot be applied if used in the previous five years

A taxpayer inquired whether they could apply the 30% reduction to salary arrears received in 2016 following a court ruling. The DGT ruled that this is not possible because the taxpayer had already applied said reduction in 2014 to another extraordinary remuneration with a generation period exceeding two years.

The question raised

Whether the 30 percent reduction provided for in Article 18.2 of the Personal Income Tax Law is applicable to irregular income obtained in the 2016 tax period.

The DGT's ruling

The 30% reduction for income with a generation period exceeding two years shall not be applied if, in the five tax periods prior to the one in which they become due, the taxpayer has already obtained other income with said generation period to which the same reduction was applied. In this case, having applied the reduction in 2014, it cannot be applied to the arrears of 2016.

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