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V3291-17 ·27 December 2017 ·consulta-vinculante Medium impact
Tax

Severance pay may lose tax exemption if a professional relationship with the company is maintained

A worker who continues to provide professional services to the same company after being unfairly dismissed has enquired whether their severance pay remains exempt from Income Tax (IRPF). The Directorate General of Taxes (DGT) indicates that the exemption requires a real and effective severance of ties with the company.

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2017-12-27PublishedPublished in the BOE
Official text Based on BOE data (boe.es). Information, not advice.

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