Limit on the 30% reduction for productivity bonuses

The application of the 30% reduction provided for in the Personal Income Tax (IRPF) regulations regarding productivity bonuses has been the subject of a recent ruling by the Directorate General of Taxes (DGT). The debate centers on whether gratifications arising from new agreements can benefit from this favorable tax treatment.

What the DGT has ruled

The inquiry analyzes the application of Article 18.2 of Law 35/2006 to the case of amounts paid during the 2024 fiscal year. The DGT's criterion determines that the 30 percent reduction is not applicable when the productivity bonus arises ex novo through a new agreement or contract.

For this tax benefit to be applicable, the regulations require a generation period exceeding two years. This implies two concurrent conditions: that the performance is linked to a minimum seniority in the company of said period, and that the agreement or contract establishing the gratification also exceeds two years in duration. As it is a gratification that is born with the agreement itself, the requirement that the pact exceeds the required period is not met.

What it means for you

This criterion directly affects workers who receive productivity bonuses, especially in situations where new gratifications are negotiated or working conditions are modified. If the productivity bonus is the result of a recent pact and does not have a generation history exceeding two years, the taxable base cannot be reduced by the percentage established by the IRPF Law and the IRPF Regulation.

What you should do

It is necessary to analyze the nature and temporality of the agreements regulating productivity bonuses in your contract or collective agreement. The distinction between a gratification established by seniority and one agreed upon ex novo is decisive for the correct settlement of the tax. It is recommended to assess the structure of these bonuses to ensure that the applied tax treatment is correct according to the validity of the pacts.