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V2501-17 ·5 October 2017 ·consulta-vinculante Medium impact
Tax

Compensations for contract suspension are not eligible for tax exemptions or the 30% reduction

A worker requested clarification regarding the taxation of compensation received during a paid leave of absence. The DGT has ruled that these amounts constitute employment income and are not eligible for any tax exemptions or reductions due to irregularity.

In 6 key points

How it affects those involved

This ruling clarifies that payments received during certain types of contract suspension, such as paid leave, are fully taxable as employment income without the tax benefits typically applied to redundancy payments.

Lifecycle

2017-10-05PublishedPublished 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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