Doctrine by topic · DGT Observatory

Imputation in a Single Period: DGT doctrinal evolution

How the DGT's position on this topic has evolved, and the rulings it rests on.

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How the DGT's position has evolved

Settled doctrine High confidence 35 rulings · 2014–2026

Current position

To apply the 30% reduction on employment income with a generation period exceeding two years, the income must be imputed in a single tax period. It is required that the income be linked to a period of seniority in the company of at least that period and that the contract or collective agreement exceeds two years. The amount to which the reduction is applied cannot exceed 300,000 euros annually.

The DGT's position remains stable regarding the need to impute the income in a single period to access the reduction. An evolution is observed towards the precision of technical requirements, integrating conditions of seniority, contract duration, and quantitative limits. The doctrine has clarified the distinction between notoriously irregular income and that with a generation period exceeding two years to avoid errors in the application of the five-year limitation.

Turning points

  1. V3669-15

    Establishes the double condition of seniority in the company and a contract or collective agreement duration exceeding two years for the reduction.

  2. V3360-20

    Introduces the limit of an amount of 300,000 euros annually upon which the reduction can be applied.

Analysis based on 35 of 35 rulings with a stated position. Updated 24 September 2026.

Rulings on this topic

24
V5271-26 28 Jul 2026

30% reduction allowed on mutual agreement termination compensation

SG de Impuestos sobre la Renta de las Personas Físicas
rendimientos del trabajoextinción de relación laboralmutuo acuerdoreducción del 30%rendimientos notoriamente irregulares LIRPF — Ley 35/2006 del IRPF art. 17LIRPF — Ley 35/2006 del IRPF art. 18.2
Affects CompanyExpat · Non-residentIndividual
V0587-25 1 Apr 2025

Mutual agreement indemnity not exempt and must be charged to a single tax period

SG de Impuestos sobre la Renta de las Personas Físicas
rendimientos del trabajoresolución de mutuo acuerdoreducción por irregularidadexención por despidoimputación en un único periodo LIRPF — Ley 35/2006 del IRPF art. 7.e)LIRPF — Ley 35/2006 del IRPF art. 17.1
Affects CompanyExpat · Non-residentIndividual
V0636-24 11 Apr 2024

30% reduction on early retirement bonuses may apply if certain requirements are met

SG de Impuestos sobre la Renta de las Personas Físicas
rendimientos del trabajojubilación anticipadaperiodo de generaciónreducción del 30%imputación en un único periodo LIRPF — Ley 35/2006 del IRPF art. 18.2RIRPF — RD 439/2007, Reglamento del IRPF art. 12
Affects CompanyExpat · Non-residentIndividual
V2794-23 16 Oct 2023

30% tax reduction applicable to income with a generation period exceeding two years

SG de Impuestos sobre la Renta de las Personas Físicas
rendimientos del trabajoperiodo de generaciónreducción del 30%rendimientos irregularesimputación en un único periodo LIRPF — Ley 35/2006 del IRPF art. 18.2RIRPF — RD 439/2007, Reglamento del IRPF art. 12
Affects CompanyExpat · Non-residentIndividual
V0379-23 21 Feb 2023

30% reduction for early retirement bonuses may apply if two conditions are met

SG de Impuestos sobre la Renta de las Personas Físicas
rendimientos del trabajoreducción por irregularidadperiodo de generaciónjubilación anticipadaimputación en un único periodo LIRPF — Ley 35/2006 del IRPF art. 18.2RIRPF — RD 439/2007, Reglamento del IRPF art. 12
Affects CompanyExpat · Non-residentIndividual
V3360-20 16 Nov 2020

30% reduction applicable to income with a generation period exceeding two years

SG de Impuestos sobre la Renta de las Personas Físicas
rendimientos del trabajoperiodo de generaciónreducción del 30%imputación en un único periodorendimientos notoriamente irregulares LIRPF — Ley 35/2006 del IRPF art. 18.2RIRPF — RD 439/2007, Reglamento del IRPF art. 12
Affects CompanyExpat · Non-residentIndividual
V0937-17 12 Apr 2017

Severance payments from mutual agreement are taxable as employment income

SG de Impuestos sobre la Renta de las Personas Físicas
rendimientos del trabajoresolución de mutuo acuerdoreducción por irregularidadexención de indemnizacionesperíodo de generación LIRPF — Ley 35/2006 del IRPF art. 7.eLIRPF — Ley 35/2006 del IRPF art. 18.2
Affects CompanyExpat · Non-residentIndividual

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