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V2918-20 29 September 2020 · 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

The taxpayer asks whether they can apply the 30% reduction for employment income with a generation period exceeding two years in 2020, having previously applied said reduction in 2017. The DGT rules that this is not possible due to the requirement that the reduction must not have been applied in the five preceding tax periods.

The question raised

Having applied in 2017 the 30 percent reduction of Article 18.2 of Law 35/2006 to income from employment with a generation period exceeding two years, the question concerns the possibility of applying the reduction in 2020.

The DGT's ruling

The 30% reduction on income with a generation period exceeding two years shall not be applied if the taxpayer obtained other income of this type to which the reduction was applied within the previous five tax periods. The fact that the amount applied in previous years was below the limit of 300,000 euros per year is irrelevant for the fulfillment of this requirement.

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