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V3024-15 8 October 2015 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · indemnización por despido

Compensation for collective redundancy is exempt up to the lesser of the limits set by the Workers' Statute or 180,000 euros

A worker inquires about the tax treatment and the withholdings applied to her compensation for a collective redundancy. The DGT clarifies that the exempt portion is capped at 180,000 euros and must be the lesser amount between said sum and the amount established by the Workers' Statute.

The question raised

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

The DGT's ruling

In collective redundancies communicated to the labor authority as of August 1, 2014, the compensation is exempt up to the lesser of: the mandatory amount under the Workers' Statute for unfair dismissal or 180,000 euros. The excess is considered earned income and may be subject to the 30% reduction provided in Article 18.2 of the LIRPF. There is no obligation to apply withholding on the exempt portion.

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