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V2159-18 18 July 2018 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · indemnización por despido

Exemption from redundancy pay maintained if new employment occurs after three years

A worker inquired whether their exemption from redundancy pay would be lost upon being hired by a company linked to their former employer. The DGT ruled that, as the new employment began more than three years after the dismissal, the presumption of a lack of genuine severance does not apply.

The question raised

Tax treatment under Personal Income Tax (IRPF) of severance pay in the event of providing services to a company linked to the company that dismissed the worker. Existence of real and effective severance of the worker from 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, in the three years following the dismissal, the worker provides services again to the same company or to another linked company. In this case, as the new hiring occurs outside the three-year period, said presumption does not apply.

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