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A query was raised regarding whether payments made by a company to its employees for relocation to a new place of work may benefit from the tax reduction for irregular income. The Directorate General for Taxes (DGT) ruled that if the compensation is paid on a monthly basis over a 24-month period, the reduction does not apply.
This ruling limits the tax benefits available for relocation allowances, as regular monthly payments are deemed to lack the necessary irregularity to qualify for the 40% reduction.
The tax team reviews your specific situation.
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