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A worker inquired whether the retirement financial incentive established in their collective agreement could benefit from the 30% reduction applicable to earnings with a generation period exceeding two years. The Directorate-General for Traffic (DGT) ruled that this is not applicable, as the incentive is linked to the act of retirement rather than the prior generation of earnings.
This ruling clarifies that specific retirement incentives do not qualify for tax reductions intended for long-term earnings, limiting the tax benefits available to workers under certain collective agreements.
The tax team reviews your specific situation.
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