Doctrine by topic · DGT Observatory

Mutual Agreement Settlement: 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 25 rulings · 2014–2026

Current position

Amounts from the mutual agreement termination of the employment relationship are considered income from work obtained in a notoriously irregular manner. To apply the 30% reduction provided for in article 18.2 of the LIRPF (Personal Income Tax Law), it is an indispensable requirement that such income be imputed to a single tax period. If the payment is received in installments across different tax years, the reduction does not apply.

The DGT's position remains constant in classifying these amounts as notoriously irregular income. The evolution focuses on technical precision regarding the single imputation requirement for the 30% reduction. The most recent rulings (V1351-24, V1564-26) reinforce that the installment payment of amounts prevents the tax benefit.

Turning points

  1. V1351-24

    Clarifies that if the agreement includes monthly payments distributed across different tax years, the single imputation requirement is not met and the reduction does not apply.

Analysis based on 25 of 25 rulings with a stated position. Updated 24 September 2026.

Rulings on this topic

24
V0738-25 22 Apr 2025

30% reduction allowed for lump-sum payment under mutual agreement resignation

SG de Impuestos sobre la Renta de las Personas Físicas
rendimientos del trabajoresolución de mutuo acuerdorendimientos notoriamente irregularesreducción del 30%período de generación LIRPF — Ley 35/2006 del IRPF art. 18.2RIRPF — RD 439/2007, Reglamento del IRPF art. 12.1.f
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
V2111-24 27 Sept 2024

Revocation of a donation is not a new taxable event if civilly annulled

SG de Impuestos Patrimoniales, Tasas y Precios Públicos
revocación de donaciónhecho imponiblenegocio jurídicoresolución de mutuo acuerdoefectos ex tunc LISD — Ley 29/1987 de Sucesiones y Donaciones art. 3.1.bRD 1629/1991 (Reglamento ISD)
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
V4944-16 15 Nov 2016

The 30% reduction for irregular income may apply to mutual agreement settlements

SG de Impuestos sobre la Renta de las Personas Físicas
rendimientos del trabajoresolución de mutuo acuerdoreducción por irregularidadperiodo de generaciónexención por despido LIRPF — Ley 35/2006 del IRPF art. 7e)LIRPF — Ley 35/2006 del IRPF art. 17.2.a)
Affects CompanyExpat · Non-residentIndividual
V4943-16 15 Nov 2016

30% irregularity reduction applicable to mutual agreement settlements

SG de Impuestos sobre la Renta de las Personas Físicas
rendimientos del trabajoresolución de mutuo acuerdoreducción por irregularidadperiodo de generaciónexención por despido LIRPF — Ley 35/2006 del IRPF art. 7eLIRPF — Ley 35/2006 del IRPF art. 17.2.a
Affects CompanyExpat · Non-residentIndividual

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