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V2996-15 8 October 2015 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · indemnización por despido

Severance pay for collective dismissal is exempt up to the lesser of 180,000 euros or the amount established in the Workers' Statute

A worker inquired about the tax treatment and the withholdings applied to her severance pay for a collective dismissal. The DGT clarifies that the exempt portion is that which does not exceed the limit of 180,000 euros nor the mandatory amount set by the Workers' Statute.

The question raised

Question raised: Tax treatment of severance pay for the termination of the employment relationship. Withholdings.

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