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V1108-16 21 March 2016 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · rendimientos del trabajo

Payments for incentivised voluntary departures are taxed as employment income without the 30% reduction

A query was raised regarding whether monthly income and payments for special agreements resulting from incentivised voluntary departures qualify for exemption or reduction. The DGT has determined that these must be taxed as employment income and that the reduction for irregular income does not apply, as the payments are not attributed to a single period.

The question raised

Personal Income Tax treatment of amounts received by employees.

The DGT's ruling

Termination by mutual agreement in a voluntary redundancy plan does not allow for the exemption under Article 7 e) of the LIRPF. The 30% reduction under Article 18.2 does not apply because the income is not imputed to a single tax period. The payment of special agreement installments by the company constitutes employment income, although the worker may deduct it pursuant to Article 19.2 a) of the LIRPF.

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