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V2360-17 ·18 September 2017 ·consulta-vinculante Medium impact
Tax

30% tax withholding reduction applicable to permanent disability compensation

A worker receives compensation for absolute permanent disability as provided for in a collective agreement. The inquiry examines whether the reduction for irregular income can be applied when calculating the tax withholding.

In 6 key points

How it affects those involved

This clarifies the tax treatment of disability compensation, confirming that such payments may qualify for the reduction applicable to irregular income, thereby reducing the immediate tax burden on the recipient.

Lifecycle

2017-09-18PublishedPublished 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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