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New guides on the latest Spanish tax and immigration developments.
Practical tools for informed decision-making.
A worker inquired whether a 30% tax reduction could be applied to a €20,000 severance payment received following dismissal. The Directorate General for Taxes (DGT) ruled that it is not applicable because the generation period is less than two years and it does not constitute notoriously irregular income.
This ruling clarifies the strict requirements for applying tax reductions to severance payments, specifically regarding the minimum duration of the generation period.
The tax team reviews your specific situation.
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