Workers with recent seniority bonuses will not be able to apply the 30% reduction

The application of the 30% reduction on employment income with a generation period exceeding two years requires strict compliance with temporal requirements. The Dirección General de Tributos (DGT) has recently clarified that the nature of the supplement is not enough; rather, the regulations require a specific temporal link between the income and the regulatory framework that establishes it.

What the DGT has resolved

The advisory body has determined that, to benefit from the provision in Article 18.2 of the IRPF Law, the income must meet two simultaneous conditions: have a generation period exceeding two years and be imputed in a single tax period. This implies that both the minimum seniority in the company and the collective agreement or contract establishing the payment must exceed the threshold of two years of validity.

In the analyzed case, since the agreements were approved in May 2023, the payments corresponding to the 2024 and 2025 fiscal years do not meet the requirement of the agreement's validity necessary to apply the 30% reduction.

What it means for you

If you are a worker receiving seniority supplements based on recently implemented collective agreements, you will likely be unable to apply the tax reduction in the first fiscal years following their approval. Although the seniority bonus is a regular perception, tax regulations require that the legal framework supporting it (the agreement) has a track record of application exceeding two years for the income to be considered generated over a prolonged period.

What should be done

It is necessary to verify the approval and entry into force dates of the collective agreements that regulate your salary supplements. Public and private entities managing these payments must ensure that the application of the reduction strictly adheres to the validity of the collective norm to avoid contingencies in the IRPF settlement of their employees.