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An employee requested their company to apply a higher withholding rate on their severance pay than what was legally required, but the company failed to do so. The Directorate General for Taxes (DGT) has ruled that, provided legal requirements are met, the taxpayer may deduct the amounts that should have been withheld in their tax return.
This ruling clarifies the taxpayer's right to correct withholding errors through their annual tax return when a specific request was made to the payer.
The tax team reviews your specific situation.
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