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A worker inquired whether compensation from a voluntary early retirement scheme could benefit from the reduction for irregularity in time. The Directorate General for Taxes (DGT) ruled that, as the resolution is by mutual agreement, it must be taxed as employment income and the 30% reduction does not apply because the payments are not attributed to a single tax period.
This ruling clarifies that early retirement settlements reached through mutual agreement do not qualify for the tax reduction typically applied to irregular employment income, as they do not meet the requirement of being paid within a single tax year.
The tax team reviews your specific situation.
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