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A query was raised regarding whether income tax (IRPF) refunds resulting from excess withholdings are protected by the non-seizability rules applicable to wages. The Directorate General for Tax Assurance (DGT) ruled that these amounts do not constitute wages and, therefore, the seizure limits set out in the Civil Procedure Law do not apply.
Taxpayers should be aware that income tax refunds are not protected by the same legal safeguards as salaries, meaning they can be seized to satisfy outstanding debts.
The tax team reviews your specific situation.
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