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V1725-23 ·15 June 2023 ·consulta-vinculante Medium impact
Tax

Variable pay received after dismissal is taxed as employment income rather than compensation

An employee inquired whether variable remuneration received following a collective redundancy could be classified as severance pay. The DGT has ruled that, as it accrued during the employment relationship, it retains its nature as employment income.

In 5 key points

Lifecycle

2023-06-15PublishedPublished in the BOE
Official text Based on BOE data (boe.es). Information, not advice.

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This analysis is informational only and does not constitute legal advice or create a client-adviser relationship. BM Consulting.
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