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A worker enquired when a redundancy payment reached via judicial agreement should be taxed and whether the 30% reduction could be applied. The DGT ruled that income is imputed when the judicial resolution becomes final and that the reduction applies if the generation period exceeds two years.
This ruling clarifies the timing of tax liability for judicial settlements and confirms the eligibility criteria for the specific tax reduction on redundancy payments based on the duration of the generation period.
The tax team reviews your specific situation.
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