Business restructuring aid is taxed as employment income
The Dirección General de Tributos (DGT) has issued a relevant ruling regarding the tax nature of extraordinary aid granted to workers affected by business restructuring processes, in accordance with Royal Decree 908/2013.
What the DGT has ruled
The query analyzed the taxation of the aid provided for in article 4.2 of Royal Decree 908/2013, specifically in those cases where the company has not paid the legal severance pay. The advisory body has determined that these amounts must be classified as employment income, given that their origin derives directly from the existing employment relationship.
Furthermore, the DGT has clarified the following points:
- Absence of exemptions: This aid is not covered by any exemption provided for in current regulations.
- Temporal imputation: The income must be declared at the time the aid becomes due, i.e., after the right to its granting has been recognized.
- Impossibility of reduction: The reduction provided for in article 18.2 of the IRPF Law is not applicable, as this aid does not meet the requirements regarding the generation period nor the scenarios established in the Regulations.
What this means for you
If you are a worker who has received financial aid under the framework of Royal Decree 908/2013 due to business restructuring, you should bear in mind that this amount will increase your IRPF taxable base. As they are considered employment income, this aid is subject to the general taxation of your income, without the possibility of applying specific tax benefits or reductions that are usually applied to other indemnities or labor concepts.
What you should do
It is necessary to analyze the particular situation of each taxpayer to ensure that the temporal imputation of the aid is correct according to the moment the right to receive it was recognized. Given the complexity of IRPF regulations and the lack of exemptions for this concept, it is fundamental to assess each case individually to comply with tax obligations accurately.
Frequently asked questions
- Can I apply the reduction for indemnities when receiving this aid?
- No, the DGT establishes that they do not meet the requirements regarding the generation period nor the scenarios of the Regulations to apply the reduction from article 18.2 of the LIRPF.
- When should I declare this aid in my tax return?
- It must be declared when it becomes due, following the recognition of the right to its granting.