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V1739-15 ·2 June 2015 ·consulta-vinculante Medium impact
Tax

No retention of IRPF required on dismissal payment if exempt at payment time

A company asks whether IRPF withholding applies to a dismissal payment deemed invalid following changes to Law 26/2014. The DGT replies that retention obligation arises at payment time, and if income was exempt at that time, withholding does not apply even if the law changes afterwards.

In 6 key points

How it affects those involved

Employers must assess exemption status at the time of payment when determining IRPF withholding for dismissal payments, regardless of subsequent legislative changes.

Lifecycle

2015-06-02PublishedPublished 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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