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A worker inquired whether income received from a special social security agreement, funded by their company following a redundancy, was tax-exempt. The DGT ruled that these amounts are taxed as gross employment income, with no possibility of applying the redundancy payment exemption.
This ruling clarifies that payments from company-funded special social security agreements do not qualify for the tax exemption typically applied to redundancy payments, meaning they are subject to standard income tax as employment earnings.
The tax team reviews your specific situation.
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