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New guides on the latest Spanish tax and immigration developments.
Practical tools for informed decision-making.
A worker inquired whether an extraordinary payment for 25 years of service could benefit from the 40% tax reduction. The Directorate-General for Taxes (DGT) ruled that it is applicable provided the right is earned over a period exceeding two years and does not constitute periodic or recurring remuneration.
This ruling clarifies the tax treatment of non-recurring seniority bonuses, potentially reducing the tax burden for employees receiving such lump-sum payments.
The tax team reviews your specific situation.
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