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A query was raised regarding whether severance pay and stay bonuses qualify for the 30% reduction under Article 18.2 of the LIRPF. The DGT ruled that while severance pay may qualify, a stay bonus cannot if the reduction has already been applied within the previous five years.
This ruling clarifies the application of tax relief on employment termination payments, distinguishing between severance pay and stay bonuses regarding the five-year limit for the 30% reduction.
The tax team reviews your specific situation.
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