The severance payment represents the settlement and payment of outstanding debts owed by the company to its employees at the end of the employment relationship, and is subject to personal income tax. The severance payment condenses the company’s obligation to the employee at the end of the employment relationship, whether due to dismissal or voluntary… Continue reading How is the severance pay taxed for income tax purposes?
Category: B Law & Tax
The Supreme Court enables the deduction of Corporate Tax in prescribed fiscal years
The Supreme Court has endorsed the possibility for entities to deduct, within the scope of Corporate Tax, amounts that have been incorrectly recorded in different fiscal periods, even when the period in which the records were made has expired. In this regard, the high court contradicts the criterion held by the tax administration, which argues… Continue reading The Supreme Court enables the deduction of Corporate Tax in prescribed fiscal years
FISCAL INNOVATIONS IN THE COMMUNITY OF MADRID FOR 2024: TAX ON LARGE FORTUNES, PERSONAL INCOME TAX AND WEALTH TAX
In 2022, the national level approved the Tax on Large Fortunes, which obliged many Autonomous Communities to modify their regulations regarding Wealth Tax. Among them, the Community of Madrid, which also made adjustments to its tax. Since 2008, a 100% rebate was applied to the Wealth Tax quota. However, with the introduction of the new… Continue reading FISCAL INNOVATIONS IN THE COMMUNITY OF MADRID FOR 2024: TAX ON LARGE FORTUNES, PERSONAL INCOME TAX AND WEALTH TAX
Beckham Law: everything you need to know
The Beckham Law, also known as the special regime for displaced workers or Impatriates Law, constitutes a unique tax regime aimed at individuals displaced who enter the workforce in Spain. Essentially, this legislation grants certain workers previously domiciled abroad the possibility of opting for a particular tax regime, more favorable than the general regime applied… Continue reading Beckham Law: everything you need to know
The article 7p personal income tax exemption: a complete guide
If you have the chance to find work abroad, and you are offered the opportunity to move temporarily outside Spain, or to provide training for a branch of your company in another country, you may find yourself in a situation where you have the opportunity to work abroad. If this is your case, pay attention… Continue reading The article 7p personal income tax exemption: a complete guide
How are non-residents taxed on real estate capital gains?
In accordance with domestic legislation, specifically Royal Legislative Decree 5/2004, of 5 March, which approves the revised text of the Law on Non-Resident Income Tax (LIRNR), income obtained in Spanish territory is understood to be income obtained directly or indirectly from real estate located in that territory or from rights related to the same. The… Continue reading How are non-residents taxed on real estate capital gains?
Main deductions in the IRPF 2023 declaration
The deadline for filing the Income Tax Return for the 2023 fiscal year – the annual declaration of the Personal Income Tax (IRPF) – ends on July 1, 2024. Therefore, in order to optimize the tax result and minimize the tax burden, it is essential to become familiar with the deductions to which one is… Continue reading Main deductions in the IRPF 2023 declaration
The Supreme Court has recognized the possibility of deducting the remunerationof administrators in cases where the company’s bylaws establish that the position is unpaid
The Supreme Court, in its ruling of June 27, 2023, determined that the position of the Tax Agency, which systematically denied the deduction of these remunerations by classifying them as “gratuities or donations” due to mercantile irregularities, was unreasonable. This approach was endorsed by the Supreme Court in other judgments issued on November 2, 2023, and on… Continue reading The Supreme Court has recognized the possibility of deducting the remunerationof administrators in cases where the company’s bylaws establish that the position is unpaid
Renta 2023 Campaign: New tax incentives in the Community of Madrid to attract foreign investment
The Renta 2024 in Madrid starts with innovative measures and a new personal income tax deflation, while progress is being made in the processing of a personal income tax deduction to attract foreign investment. Although we have already known about the personal income tax deflation in Madrid for months, progress is now being made on… Continue reading Renta 2023 Campaign: New tax incentives in the Community of Madrid to attract foreign investment
The Community of Madrid Initiates the process for processing deduction in Personal Income Tax to attract foreign investment
The Community of Madrid, within the framework of its legislative prerogative, has initiated the processing of the new deduction contemplated in the Personal Income Tax (IRPF), with the purpose of promoting and attracting foreign investments. This process is based on the aim of fostering international investment in the Madrid region, and aligns with the regulatory initiative… Continue reading The Community of Madrid Initiates the process for processing deduction in Personal Income Tax to attract foreign investment
