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A company has requested clarification on whether economic compensation paid in lieu of a retirement bonus qualifies for the 30% tax reduction for notoriously irregular income. The Directorate-General for Taxes (DGT) has ruled that this reduction does not apply.
This ruling clarifies that compensation for waiving a retirement bonus is not treated as notoriously irregular income for tax reduction purposes, affecting how such payments are taxed.
The tax team reviews your specific situation.
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