Doctrine by topic · DGT Observatory

Senior Management: DGT doctrinal evolution

How the DGT's position on this topic has evolved, and the rulings it rests on.

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How the DGT's position has evolved

Doctrinal reversal High confidence 18 rulings · 2014–2024

Current position

Severance payments for withdrawal in senior management contracts are exempt up to the lesser of the mandatory minimum amount (seven days per year with a limit of six monthly payments) or 180,000 euros. Compensation for lack of notice is not a severance payment, but rather constitutes employment income without exemption. Remuneration for management functions is taxed as employment income, regardless of the commercial nature of the relationship.

The DGT's position has moved from considering that senior management severance payments did not benefit from an exemption due to the lack of mandatory limits, to admitting a limited exemption. Initially, it was argued that since there were no minimum or maximum limits in the Workers' Statute for these positions, the amount was subject to IRPF (Personal Income Tax). The evolution culminates with the application of an exemption limit based on the mandatory minimum amount or 180,000 euros.

Turning points

  1. V0445-24

    Introduces the exemption for withdrawal compensation up to the lesser of the mandatory minimum amount or 180,000 euros, reversing the thesis that no exemption existed due to the lack of mandatory limits.

Analysis based on 17 of 18 rulings with a stated position. Updated 25 September 2026.

Rulings on this topic

18
V3104-16 5 Jul 2016

Deductibility of remuneration for non-administrator senior functions

SG de Impuestos sobre las Personas Jurídicas
alta direccióngastos deduciblesadministrador únicovalor normal de mercadoentidades vinculadas LIS — Ley 27/2014 del Impuesto sobre Sociedades art. 10.3LIS — Ley 27/2014 del Impuesto sobre Sociedades art. 11
Affects CompanyExpat · Non-residentIndividual
V3078-15 14 Oct 2015

Managers' high-level salaries taxed as earnings from labour

SG de Impuestos sobre la Renta de las Personas Físicas
rendimientos del trabajoadministradoralta direcciónretenciónnaturaleza mercantil LIRPF — Ley 35/2006 del IRPF art. 17.2.eLIRPF — Ley 35/2006 del IRPF art. 101.2
Affects CompanyExpat · Non-residentIndividual
V1238-15 23 Apr 2015

Directorial severance payments are fully taxable under IRPF

SG de Impuestos sobre la Renta de las Personas Físicas
indemnización por cesealta direcciónrendimientos del trabajoexenciónperíodo de generación LIRPF — Ley 35/2006 del IRPF art. 7.eLIRPF — Ley 35/2006 del IRPF art. 18.2
Affects CompanyExpat · Non-residentIndividual

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