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V2611-21 ·27 October 2021 ·consulta-vinculante Medium impact
Tax

Payments for holidays, overtime and extraordinary bonuses upon termination of employment are subject to Income Tax (IRPF) withholding

An executive enquired whether amounts received for untaken holidays, overtime and the proportional part of the extraordinary bonus following the termination of their employment relationship were subject to Income Tax (IRPF) withholding. The Directorate General for Tax (DGT) responds that these amounts constitute employment income and must be subject to the corresponding withholding tax.

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2021-10-27PublishedPublished in the BOE
Official text Based on BOE data (boe.es). Information, not advice.

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