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A worker inquired whether a premium for joining a voluntary redundancy scheme qualifies for the irregularity reduction. The DGT ruled that, as the termination is by mutual agreement, it must be taxed as employment income and the 30% reduction does not apply if it is not attributed to a single tax period.
This ruling clarifies that severance payments resulting from mutual agreements do not qualify for the tax reduction typically applied to irregular employment income, unless specific conditions regarding the tax period are met.
The tax team reviews your specific situation.
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