Tag: senior management

Tax Advisor: Compensations granted to directors in Corporate Income Tax cannot be considered as acts of generosity and the theory of the link does not apply to them

In a ruling, the Supreme Court rejects the debate on the deductibility of compensation to directors based on concepts such as liberality and expenses contrary to the legal system, as long as such compensation is duly registered and the rendering of services is not in question. In addition, the court emphasizes its rejection of the… Continue reading Tax Advisor: Compensations granted to directors in Corporate Income Tax cannot be considered as acts of generosity and the theory of the link does not apply to them

Tax advisor: Termination of a senior management contract due to significant changes in working conditions

In situations where a special senior management employment relationship is terminated, case law has established that it is possible to apply the personal income tax (IRPF) exemption to the severance payment received by the senior manager. Therefore, the exemption has been recognized both in cases of termination of the senior management contract due to the… Continue reading Tax advisor: Termination of a senior management contract due to significant changes in working conditions