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Practical Income Manual 2021.

Reductions applicable to certain full income

The reductions applicable to the full income listed below are intended to alleviate the negative effects that the progressivity of the Personal Income Tax scales can cause in those income whose generation period does not correspond to that of its obtaining, provided, furthermore, that the latter does not occur periodically or recurrently. Specifically, these reductions are the following:

  1. A) Reduction for returns with a generation period of more than two years or obtained in a notoriously irregular manner
  2. B) Benefits in the form of capital derived from public social security regimes
  3. C) Transitional regime of reductions applicable to benefits received in the form of capital derived from private social security systems
  4. Summary tables: Reductions applicable to certain full income