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V0905-17 ·11 April 2017 ·consulta-vinculante Medium impact
Tax

Dismissal indemnity subject to IRPF; retention required

An employee asks whether indemnity from a disciplinary dismissal is exempt from IRPF and whether the company must withhold it. The DGT responds that, as the dismissal is not unjust, the amount is taxable and retention must be made.

In 6 key points

How it affects those involved

Employers must withhold IRPF on disciplinary dismissal indemnities, as they are not exempt under current tax rules.

Lifecycle

2017-04-11PublishedPublished 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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