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V2998-17 ·20 November 2017 ·consulta-vinculante Medium impact
Tax

Severance bonus taxed as employment income without reduction

A worker inquired whether the bonus included in their redundancy settlement (ERE) could benefit from the reduction for irregular income. The DGT ruled that it must be taxed in full as employment income in the tax year it becomes due.

In 6 key points

How it affects those involved

Taxpayers receiving bonuses as part of a redundancy package cannot apply the reduction for irregular income, meaning a higher tax burden on these specific amounts.

Lifecycle

2017-11-20PublishedPublished 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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