DGT denies the 30% reduction for irregularity on professional fees

There is recurring confusion among taxpayers regarding the application of the 30% reduction in Personal Income Tax (IRPF) for income that is not received on a regular basis. Recently, the Dirección General de Tributos (DGT) has issued a ruling that precisely delimits when income can be considered irregular for tax purposes.

What the DGT has ruled

The query concerned the possibility of applying the reduction provided for in Article 32.1 of Law 35/2006 (LIRPF) to professional fees received in an extraordinary manner and without relation to the taxpayer's main activity. The DGT has ruled that such a reduction is not applicable.

The Administration's criteria are based on the fact that, to apply this benefit, one of the following requirements must be met:

• The generation period of the income must be more than two years.
• The income must be regulationally classified as notoriously irregular.

The resolution underlines that professional fees do not appear in the list of cases of regulatory irregularity contemplated in RD 439/2007, as is the case with subsidies, severance pay, prizes, or the substitution of economic rights.

What this means for you

This criterion directly affects professionals who receive one-off or high-value income that does not fit into their ordinary cash flow. The fact that an income is extraordinary or not linked to the main activity is not sufficient for the Tax Agency to recognize the irregularity of the income. If the income does not meet the temporality criterion (generation of more than two years) or is not expressly typified in the IRPF Regulations, the 30% reduction is improper.

What you should do

When receiving income that may be considered outside the norm, it is necessary to verify whether it strictly complies with the requirements of Law 35/2006 and RD 439/2007. Both the generation period of the income and its legal nature must be analyzed to avoid errors in the income tax return that could lead to inspections. It is fundamental to assess each particular situation to determine the correct classification of the income.