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A worker inquired whether a severance gratuity paid upon retirement could qualify for the 30% tax reduction. The DGT has ruled that this does not constitute exempt compensation and fails to meet the requirements for the reduction applicable to irregular income.
This ruling clarifies that retirement gratuities are treated as employment income rather than exempt compensation, meaning they must meet specific criteria regarding the generation period to qualify for tax relief.
The tax team reviews your specific situation.
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