Skip to content
V3686-20 ·30 December 2020 ·consulta-vinculante Medium impact
Tax

Compensation for contract termination following substantial change in working conditions is exempt (subject to limits)

A query was raised regarding whether compensation received for terminating an employment relationship due to a substantial change in working conditions is exempt from Personal Income Tax (IRPF). The Directorate General for Taxes (DGT) ruled that such compensation is exempt, provided it complies with the provisions of the Workers' Statute.

In 5 key points

Lifecycle

2020-12-30PublishedPublished in the BOE
Official text Based on BOE data (boe.es). Information, not advice.

Does this provision affect you?

The tax team reviews your specific situation.

Talk to the tax team
This analysis is informational only and does not constitute legal advice or create a client-adviser relationship. BM Consulting.
Email
Contact