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A worker inquired whether payments received under an incentivised voluntary redundancy scheme are exempt from Personal Income Tax (IRPF). The Directorate General for Taxes (DGT) ruled that, as the termination is by mutual agreement, the exemption under Article 7(e) does not apply, although the reduction for irregular income does.
This ruling clarifies that incentivised voluntary redundancy payments do not qualify for the specific tax exemption for redundancy, but they are eligible for the tax reduction applicable to irregular income.
The tax team reviews your specific situation.
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