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New guides on the latest Spanish tax and immigration developments.
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A worker inquired whether their collective redundancy payment would be exempt from Income Tax (IRPF) if they rejoined their original company following the end of a contract suspension. The Directorate General for Taxes (DGT) indicates that rejoining the company or an affiliate within less than three years triggers a presumption that no genuine severance of the employment relationship occurred.
This ruling clarifies that tax exemptions for redundancy payments are contingent upon a genuine termination of employment, preventing tax avoidance through temporary separations.
The tax team reviews your specific situation.
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