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V1907-20 12 June 2020 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · indemnización por despido

Exemption from redundancy pay may be lost if re-employed by the same company within three years

A query was raised regarding whether a worker who received tax-exempt redundancy pay loses this benefit if rehired by the same company months later. The DGT has indicated that re-employment within less than three years creates a presumption that there was no real and effective termination of the employment relationship.

The question raised

Tax treatment under Personal Income Tax (IRPF) of severance pay in the event of providing services to the company that dismissed the worker. Existence of a real and effective severance of the worker's relationship with the company.

The DGT's ruling

The exemption of severance pay requires a real and effective severance of the worker's relationship with the company. It is presumed that such severance does not exist if the worker provides services again to the same company or to an affiliated company within the three years following the dismissal. This presumption admits evidence to the contrary to prove that the new relationship does not nullify the initial severance.

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