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V2605-19 ·24 September 2019 ·consulta-vinculante Medium impact
Tax

Compensation for termination of commercial relationship taxed as economic activity income without reduction in IRPF

A self-employed professional enquired whether compensation received for the termination of their contractual relationship with a company was subject to IRPF and VAT. The DGT has determined that it must be taxed under IRPF as income from economic activity without entitlement to a reduction, and that it is not subject to VAT as it constitutes compensation for damages.

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Lifecycle

2019-09-24PublishedPublished in the BOE
Official text Based on BOE data (boe.es). Information, not advice.

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