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V3297-20 ·6 November 2020 ·consulta-vinculante Medium impact
Tax

Rehiring an employee within three years may void dismissal compensation tax exemption

A company sought clarification on whether rehiring an employee dismissed in 2018, which occurred in 2020, affected the tax exemption of their severance pay. The Directorate-General for Taxes (DGT) indicates that rehiring within three years creates a presumption that no real termination of the employment relationship took place, which could require the worker to pay tax on said compensation.

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2020-11-06PublishedPublished in the BOE
Official text Based on BOE data (boe.es). Information, not advice.

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