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V1064-25 25 June 2025 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · indemnización por despido

Dismissal compensation exemption may be lost if working again in same or linked company

The consultant asks whether dismissal compensation exemption remains if hired by a company in the same group. The DGT responds that there is a presumption of no real and effective disengagement if services are provided again to the same company or a linked one within three years.

The question raised

Existence of a real and effective severance of the taxpayer's relationship with the company for the purposes of enjoying the exemption provided in Article 7 e) of the Personal Income Tax Law in the event that they are hired by a company within the same group in the future.

The DGT's ruling

The exemption under Article 7.e) of the Personal Income Tax Law requires a real and effective severance of the worker's relationship with the company. It is presumed that no such severance exists if, in the three years following the dismissal, the worker provides services to the same company or to another related company pursuant to the Corporate Income Tax Law. This presumption allows for rebuttal to prove that the new relationship does not nullify the original severance.

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