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A taxpayer inquired whether a compensatory payment received due to the replacement of a loyalty bonus under a collective agreement qualifies for the tax reduction applicable to income with a generation period exceeding two years. The Directorate General for Taxes (DGT) ruled that this is possible, provided specific requirements regarding seniority and the validity of the collective agreement are met.
This ruling clarifies the tax treatment of compensatory payments related to the modification of collective agreements, potentially offering tax relief to employees receiving such payments.
The tax team reviews your specific situation.
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