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V0503-16 8 February 2016 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · indemnización por despido

Severance pay exemption may be affected if re-employed by the same company within three years

A worker received severance pay and shortly thereafter signed a fixed-term contract with the same company. The DGT indicates that the exemption from severance pay requires a real and effective termination of the employment relationship.

The DGT's ruling

The exemption from severance pay is lost if the worker provides services again to the same company or to a related entity within three years following the termination. This situation creates a presumption that there was no real severance, although the taxpayer may attempt to prove otherwise through means admitted by law. The nature of the new contract or the services provided is irrelevant for the application of this presumption.

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