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V0464-21 ·4 March 2021 ·consulta-vinculante Medium impact
Tax

Severance pay for mutual agreement termination is not exempt but allows for irregularity reduction

A worker inquired whether the compensation received for terminating her employment following a leave of absence could be exempt or subject to a reduction. The DGT has determined that, as it is a mutual agreement, the dismissal exemption does not apply, but the 30% reduction for irregular earnings does.

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2021-03-04PublishedPublished 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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