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V2067-24 25 September 2024 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · indemnización por despido

Redundancy payments for objective dismissal are exempt from Income Tax within the limits of the Workers' Statute

A query was raised regarding whether redundancy payments for objective dismissal are exempt from Income Tax (IRPF) without requiring a prior conciliation act. The Directorate General for Taxes (DGT) ruled that they are exempt, provided they do not exceed the legal limits established in the Workers' Statute and the €180,000 cap.

The question raised

Whether the compensation received in the event of dismissal on objective grounds under Article 52 of the Workers' Statute is considered exempt, without the need for a conciliation act before the Mediation, Arbitration and Conciliation Service or before the Court.

The DGT's ruling

Severance pay for dismissal on objective grounds is exempt from tax without the need for prior conciliation. The exemption applies up to the limit of the amount mandatorily established in the Workers' Statute for unfair dismissal, with a maximum cap of 180,000 euros. Any excess over these limits shall be taxed as income from employment.

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