GuyInSpain

Hello!

I have worked in Spain for a few years now and previously when it came to filling out the Renta WEB tax return, even though it wasn't easy (due to my limited Spanish), it didn't require too much work (as I basically just had to confirm details etc).

Unfortunately last year my company that brought me to Spain made me redundant (due to the work no longer being there), so I was retrenched for what they call 'objective' reasons. As a part of being made retrenched I was given an additional payment that I received which I was told was non-taxable (listed on the statement as 'INDEMNIZACION POR CAUSAS OBJETIVAS').

When I went into Renta WEB I saw that what it calls the net income figure really didn't add up to what I received as payments in total (e.g. total net income). If I add in the figure for what I was told would be non-taxable then at least it comes up with a similar figure.

So now my issue is that I don't know for certain whether the Renta WEB form has or hasn't included this tax-free amount (which i've confirmed from research is non-taxable), as I don't know if my previous employer listed this as one of my payments or not.

Does anyone else have experience with this? Does anyone know if I need to list this somewhere in the tax return form, so that I don't pay more tax than I actually owe?

I would've gotten onto this much sooner had I known this issue would arise, but I didn't expect it, so thought it would be similar to other years (in terms of just confirming details and submitting it), so left it till this week.

Any advice received would be much welcome!

Loafing Along

Yes the amount should be not taxable but you need to check with a tax specialist if your payment exceeds the permitted 20 days for each year worked or the equivalent of one year's salary. In the case of a "despido improcedente ( which you state your's is not ) the upper limit is 33 days . Also there is an upper limit of Euro 180.000,- above which tax has to be paid on the excess.