DGT rejects the 30% reduction based on the time elapsed between accrual and collection

The application of the reduction provided for in Article 18.2 of Law 35/2006 on Personal Income Tax (IRPF) has raised doubts regarding how to calculate the generation period of earnings. A recent binding ruling from the Directorate General of Taxes (DGT) has delimited the criteria to determine whether employment income meets the requirement of having been generated over a period exceeding two years.

What the DGT has ruled

The question posed focused on whether the 30% reduction could be applied when a worker received employment income after more than two years had passed since its accrual and claim. The DGT has ruled that the generation period of more than two years refers exclusively to the production of earnings throughout that time span.

The criteria establish that the time elapsed after the earnings have been generated does not increase said generation period. Consequently, what determines the timeframe for applying the reduction is the time during which the earnings were actually produced, and not the time that passes from their accrual to the moment of their collection.

What this means for you

This criterion directly affects workers claiming income accrued in previous years. If a taxpayer receives a payment corresponding to earnings produced over a short period, but which is collected after several years of waiting or claiming, they will not be able to apply the 30% reduction.

The regulations require that the activity generating the income has extended over time for more than two years. The mere passage of time between the moment the right to collection arises and the moment it is made effective does not allow access to this tax benefit.

What you should do

It is necessary to analyze the nature of the earnings received and the exact period in which they were generated. It must be verified whether the production of said income meets the temporal requirement of Law 35/2006. Given that the DGT's interpretation is binding, the correct classification of the generation period is fundamental to avoid errors in the IRPF tax return. It is recommended to assess each particular situation to determine if the origin of the income allows for the use of this reduction.