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A worker inquired whether they could apply a tax reduction when receiving capital from a survival insurance policy paid for by their employer. The Directorate General of Taxes (DGT) ruled that the benefit constitutes employment income and does not qualify for the 30% reduction, as the generation period is not longer than two years.
This ruling clarifies that survival insurance benefits are treated as employment income and denies the 30% tax reduction for benefits where the generation period is two years or less.
The tax team reviews your specific situation.
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