7,4,2,4. 30% reduction

Net income with a generation period of more than two years, as well as those classified by regulations as having been 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 apply to income that, even though individually it could derive from actions carried out over a period that meets the indicated requirements, comes 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 €300,000 per year.

When the income from economic activities with a generation period of more than two years was received in installments prior to 1-1-2015, the 30% reduction will only be applicable if the quotient resulting from dividing the number of years corresponding to the generation period, computed from date to date, by the number of tax periods of installment, is greater than two.

Yields obtained in a notoriously irregular manner over time

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

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

• Compensation and aid for cessation of economic activities.

• Literary, artistic or scientific prizes that do not benefit from 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 lieu of economic rights of indefinite duration.