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The Directorate General for Taxes (DGT) has been consulted on whether compensation for salary reductions agreed upon during a collective redundancy can benefit from the 40% tax reduction for notoriously irregular earnings. The DGT has ruled that it is applicable, provided the amount is attributed to a single tax period.
This ruling clarifies the tax treatment of redundancy payments resulting from changes in working conditions, confirming that they qualify for the 40% reduction if they meet the criteria for irregular income within a single tax year.
The tax team reviews your specific situation.
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