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Form 100. Personal Income Tax Declaration 2019

7,4,2,4. 30 percent reduction

Net income with a generation period of more than two years, as well as those classified by regulation as obtained in a notoriously irregular manner over time, will be reduced by 30% provided that, in both cases, they are attributed to a single tax period.

This reduction will not be applicable to those income that, even though they may individually derive from actions carried out over a period that meets the indicated requirements, come from the exercise of an economic activity that regularly or habitually obtains this type of income.

The amount of net income to which the 30% reduction is applied may not exceed the amount of 300,000 euros per year.

When the income from economic activities with a generation period of more than two years was received in fractions prior to 1-1-2015, the 30 percent reduction will only be applicable in the event that the quotient resulting from dividing the number of years corresponding to the generation period, computed from date to date, between the number of tax periods of fractionation, is greater than two.

Income obtained in a notoriously irregular manner over time (art. 25 Rgl.)

The following are exclusively considered income from economic activities obtained in a notoriously irregular manner over time, when they are attributed in a single tax period:

  • Capital subsidies for the acquisition of non-depreciable fixed assets.

  • Compensation and aid for cessation of economic activities.

  • Literary, artistic or scientific awards that do not enjoy exemption from this Tax. For these purposes, economic benefits derived from the assignment of intellectual or industrial property rights or which replace them are not considered prizes.

  • Compensation received in replacement of economic rights of indefinite duration.