Skip to content
V1138-16 ·21 March 2016 ·consulta-vinculante Medium impact
Tax

Incentivised voluntary redundancy payments are taxed as employment income without exemption or reduction

A worker requested clarification regarding the taxation of monthly payments and the contribution to their special agreement with the Social Security following a voluntary redundancy scheme. The Directorate General for Taxes (DGT) ruled that these amounts constitute employment income and that the company's payment towards the special agreement is considered additional income.

In 6 key points

How it affects those involved

This ruling clarifies that incentive payments for voluntary redundancy do not qualify for the tax reductions typically applied to irregular income, and that employer contributions to Social Security special agreements are taxable for the employee.

Lifecycle

2016-03-21PublishedPublished in the BOE
Official text Based on BOE data (boe.es). Information, not advice.

Does this provision affect you?

The tax team reviews your specific situation.

Talk to the tax team
This analysis is informational only and does not constitute legal advice or create a client-adviser relationship. BM Consulting.
Email
Contact