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The Directorate General for Taxes (DGT) has addressed whether the 30% reduction provided for in Article 18.2 of the Personal Income Tax Act (LIRPF) applies to amounts received following the mutual termination of an employment relationship. The DGT has ruled that it is applicable, provided that the amounts are attributed to a single tax period.
This ruling clarifies the tax treatment for employees receiving settlements through mutual agreement, confirming their eligibility for tax relief if the payment is treated as a single-period income event.
The tax team reviews your specific situation.
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