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V0228-20 4 February 2020 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · indemnización por despido

Exemption from redundancy pay presumed invalid if services are provided to the company within three years

A worker enquired whether the exemption from their redundancy pay for objective dismissal would remain valid if they returned to provide services to the company as a professional. The Directorate-General for Tax (DGT) ruled that a lack of real severance is presumed if activity is provided within the following three years.

The question raised

Existence of a real and effective severance of the worker's relationship with the company for the purposes of considering the received severance pay exempt.

The DGT's ruling

The exemption of severance pay requires a real and effective severance of the worker's relationship with the company. It is presumed that such severance does not exist if, in the three years following the dismissal, the worker provides services again to the same company or to an affiliated company, whether through a new employment relationship or a professional activity. This presumption allows for evidence to the contrary to prove that the new relationship does not nullify the original severance.

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