Skip to content
Back to index
V3047-16 30 June 2016 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · indemnización por despido

Application of the 30% reduction on severance payments received in installments starting from 2015

The taxpayer asks whether a 30% or 40% reduction should be applied to the portion of a severance payment received in 2015 following installment payments. The DGT responds that, for non-exempt excesses received from 2015 onwards, the applicable reduction percentage is 30%.

The question raised

To determine whether the applicable reduction percentage on the portion of the severance payment received in the year 2015 should be 30% or 40%.

The DGT's ruling

For severance payments received in installments, the 30% reduction under Article 18.2 of the LIRPF applies provided that the quotient between the generation period and the number of installment periods is greater than two. All fiscal years in which the severance is received must be included in this calculation, including exempt ones. The annual limit of 300,000 euros to which the reduction applies is indeed applicable to terminations prior to 2013.

Free assessment and quote