Skip to content
V0603-20 ·30 March 2020 ·consulta-vinculante Medium impact
FISCAL

Dismissal compensation not exempt if improvidence not recognised in SMAC or by judicial decision

A worker claimed exemption from dismissal compensation after the employer applied IRPF retention. The DGT states that for compensation to be exempt, the improvidence must be recognised in the SMAC conciliation procedure or by judicial decision.

In 6 key points

How it affects those involved

Employers must ensure that dismissal improvidence is formally recognised in SMAC conciliation or through a judicial ruling to qualify for tax exemption on dismissal compensation.

Lifecycle

2020-03-30PublishedPublished in the BOE
Official text Based on BOE data (boe.es). Information, not advice.

Does this provision affect you?

The fiscal team reviews your specific situation.

Talk to the fiscal team
This analysis is informational only and does not constitute legal advice or create a client-adviser relationship. BM Consulting.
Email
Contact