Skip to content
Back to index
V1794-18 21 June 2018 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · indemnización por despido

Compensation for termination of contract pursuant to Article 50 of the Workers' Statute is exempt from Personal Income Tax (IRPF)

The taxpayer asks whether the compensation agreed upon through a conciliation agreement for termination of contract under Article 50 of the Workers' Statute is exempt from Personal Income Tax (IRPF). The DGT responds that said amount is exempt income within the limits established by law.

The question raised

Question raised: Exemption from Personal Income Tax (IRPF) on the compensation.

The DGT's ruling

Compensation received under Article 50 of the Workers' Statute is considered exempt income for Personal Income Tax (IRPF) purposes. The exempt amount is limited to the lesser of: the amount mandatorily established in the Workers' Statute for unfair dismissal or the amount of 180,000 euros. For the calculation of the amount under the Statute, the rules for contracts entered into before or after February 12, 2012, shall apply.

Email
Contact