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V4928-16 15 November 2016 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · rendimientos del trabajo

30% reduction for irregular earnings does not apply to bonuses that are not notoriously irregular or lack a generation period exceeding two years

A worker inquired whether the 30% reduction for irregular earnings could be applied to a €600,000 bonus agreed upon for professional success. The DGT ruled that it is not applicable because the amount does not meet the criteria for regulatory irregularity, nor does it have a generation period exceeding two years.

The question raised

Application of the 30 percent reduction provided for in Article 18.2 of the Personal Income Tax Law.

The DGT's ruling

The bonus does not allow for the 30% reduction provided for in Article 18.2 of the Personal Income Tax Law (LIRPF). It is not considered income obtained in a notoriously irregular manner as it is not included in the list set forth in Article 12.1 of the Personal Income Tax Regulations. Furthermore, the requirement of having a generation period exceeding two years is not met, as the right arises with the agreement and is not generated during the time elapsed until payment.

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