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V1740-15 ·2 June 2015 ·consulta-vinculante Medium impact
Tax

40% tax reduction applicable to compensation for changes in working conditions

A worker inquired whether compensation received due to outsourcing and geographical mobility could be classified as notoriously irregular income. The Directorate General for Taxes (DGT) ruled that, if not exempt, these amounts qualify for the 40% reduction provided they are reported within a single tax period.

In 6 key points

How it affects those involved

This ruling clarifies the tax treatment of specific types of employment compensation, potentially reducing the tax burden for employees undergoing structural changes in their employment contracts.

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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