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V0293-25 ·17 March 2025 ·consulta-vinculante Medium impact
Tax

Commercial contract termination indemnity does not allow 30% IRPF reduction

A commercial agent asks whether indemnity from unilateral commercial contract termination qualifies for the irregular income reduction. The DGT states it must be taxed as business income without entitlement to such reduction.

In 5 key points

How it affects those involved

Businesses terminating contracts receive indemnities that are taxed as business income and are not eligible for the 30% irregular income reduction.

Lifecycle

2025-03-17PublishedPublished in the BOE
Official text Based on BOE data (boe.es). Information, not advice.

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This analysis is informational only and does not constitute legal advice or create a client-adviser relationship. BM Consulting.
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