Doctrine by topic · DGT Observatory

Years of Service: 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

Refined position High confidence 16 rulings · 2014–2026

Current position

The exemption in IRPF (Personal Income Tax) is limited to the mandatory amount established in the Workers' Statute and has a cap of 180,000 euros. The number of years of service for this calculation are those that would be taken into account if there were no individual or collective agreement. The exempt amount is determined by the years of service in the company where the dismissal occurs, without counting seniority from other companies.

The DGT's position has maintained a constant basis regarding the limitation of the exemption to the legal amount and the 180,000 euro cap. However, a change is observed in the calculation of seniority: while previous rulings (V0078-20, V1656-21) allowed the inclusion of years from subrogation or corporate groups, the latest ruling (V1342-26) restricts the calculation to the years of service in the company where the dismissal occurs.

Turning points

  1. V1342-26

    Introduces a restriction in the calculation of seniority by establishing that the exempt amount is calculated based on the years of service in the company where the dismissal occurs, without counting seniority from other companies.

Analysis based on 16 of 16 rulings with a stated position. Updated 26 September 2026.

Rulings on this topic

16
V1342-26 3 Jun 2026

Exemption from dismissal payment applies only to years of actual service

SG de Impuestos sobre la Renta de las Personas Físicas
indemnización por despidoaños de servicioantigüedadexenciónrendimiento del trabajo LIRPF — Ley 35/2006 del IRPF art. 7.e)LIRPF — Ley 35/2006 del IRPF art. 18.2
Affects CompanyExpat · Non-residentIndividual
V1317-19 6 Jun 2019

Statutory severance pay exemption capped at 180,000 euros

SG de Impuestos sobre la Renta de las Personas Físicas
indemnización por despidodespido colectivoexenciónaños de servicioestatuto de los trabajadores LIRPF — Ley 35/2006 del IRPF art. 7.eEstatuto de los Trabajadores
Affects CompanyExpat · Non-residentIndividual

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