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V0836-20 ·13 April 2020 ·consulta-vinculante Medium impact
Tax

Legal fees for unfair dismissal are deductible from Personal Income Tax (IRPF) up to a €300 annual limit

A query was raised regarding whether legal fees incurred during unfair dismissal proceedings are deductible and in which tax year they must be declared. The Directorate General of Taxes (DGT) has ruled that they are deductible, subject to a €300 limit, and must be attributed to the year in which they became due.

In 6 key points

How it affects those involved

Taxpayers facing unfair dismissal can reduce their taxable income by claiming legal fees, provided they stay within the statutory annual cap.

Lifecycle

2020-04-13PublishedPublished 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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