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V3078-21 9 December 2021 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · indemnización por despido

Redundancy compensation for objective dismissal is exempt up to the statutory limit and €180,000

A worker who provided services to several companies within the same group sought clarification on the tax treatment of her redundancy compensation for objective dismissal and the applicable seniority. The DGT ruled that the tax exemption is limited to the mandatory amount required under the Workers' Statute (capped at €180,000) and that, in corporate groups, seniority for this calculation is based on the total service provided to the group as the employer.

The question raised

Tax treatment under Personal Income Tax (IRPF) of the severance pay for individual dismissal on objective grounds received by the taxpayer who provided services to companies within the same corporate group. Computable seniority.

The DGT's ruling

The exemption from Personal Income Tax (IRPF) on severance pay for objective dismissal is limited to the lesser of: the mandatory amount according to the Workers' Statute (applying the limits based on the contract date) and 180,000 euros. For the calculation of the exempt severance pay, in the case of corporate groups, the number of years of service provided to the group as an employer must be considered. The excess over the mandatory amount shall be subject to taxation, and the 30% reduction for irregular income may be applied if the legal requirements are met.

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