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V0635-15 20 February 2015 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · indemnización por despido

Exemption threshold not applicable if consultation period started before August 2014

A company inquired about exemption from collective dismissal indemnities and penalty reductions. The DGT clarifies that since the consultation period began before 1 August 2014, the 180,000 euro exemption limit does not apply.

The question raised

Application of the exemption regulated in Article 7 e) of Law 35/2006, on Personal Income Tax, and the 40% reduction for irregularity provided for in Article 18.2 of the same Law.

The DGT's ruling

In collective redundancies with a consultation period communicated before August 1, 2014, the 180,000 euro exemption limit does not apply. The exempt portion is that which does not exceed the limits set by the Workers' Statute for unfair dismissal. The excess shall be taxed as employment income, and the 40% reduction for irregularity may be applied if it is exigible before 2015, or the 30% reduction if it is from said date onwards.

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