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V3183-23 ·11 December 2023 ·consulta-vinculante Medium impact
Tax

30% reduction applicable when calculating retention on excess severance pay

A company asks whether the reduction under article 18.2 of the LIRPF should be deducted when calculating the retention on a severance payment exceeding exemption thresholds. The DGT responds that to determine the retention type, the entity must reduce the amount of taxable income subject to the reduction.

In 6 key points

How it affects those involved

Taxpayers must apply the 30% reduction when assessing the retention on severance payments exceeding exemption limits, affecting the calculation of taxable income subject to retention.

Lifecycle

2023-12-11PublishedPublished 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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