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V4551-16 ·24 October 2016 ·consulta-vinculante Medium impact
Tax

Statutory severance pay exemption capped at unjust dismissal limit and €180,000

The DGT confirms that severance pay from a collective dismissal, including an age-based component, is exempt from personal income tax up to the amount of unjust dismissal compensation, with a cap of €180,000.

In 6 key points

How it affects those involved

Severance payments from collective dismissals are exempt from personal income tax up to the unjust dismissal limit and a maximum of €180,000.

Lifecycle

2016-10-24PublishedPublished in the BOE
Official text Based on BOE data (boe.es). Information, not advice.

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This analysis is informational only and does not constitute legal advice or create a client-adviser relationship. BM Consulting.
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