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V2619-23 27 September 2023 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · jubilación demorada

30% reduction applicable to lump-sum delayed retirement bonuses

A query was raised regarding whether the financial compensation for delaying retirement, received as a lump sum, qualifies for the 30% reduction under Article 18.3 of the Personal Income Tax Act (LIRPF). The Directorate General for Taxes (DGT) has ruled that this reduction is indeed applicable to lump-sum payments.

The question raised

Whether receipt in the form of a lump sum payment may benefit from the reduction established in Article 18.3 of Law 35/2006.

The DGT's ruling

The economic supplement for delayed retirement under Article 210.2.b) of the TRLGSS is considered income from employment. Therefore, the 30 percent reduction provided for in Article 18.3 of the IRPF Law is applicable when said amount is received as a lump sum (single payment).

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