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?
Tag: severance pay
Tax Advisor: The Supreme Court allows the deduction in the Personal Income Tax of the severance pay of senior managers who are administrators
The Supreme Court, in its ruling number 1092/2023, dated July 25, ECLI:ES:TS:2023:3589, has established as case law the following: 1) It is feasible to apply the reduction for irregular income as established in article 18.2 of the Personal Income Tax Law (LIRPF) to compensation received by senior executives who also hold the position of corporate… Continue reading Tax Advisor: The Supreme Court allows the deduction in the Personal Income Tax of the severance pay of senior managers who are administrators
Tax advisor: Severance pay under the Beckham Law
In the case of the special regime for workers posted to Spain, or Beckham Law (article 93 of the Personal Income Tax Law – LIRPF), the Personal Income Tax liability is determined according to the rules established in the Non-Resident Income Tax (IRNR) for income obtained without a permanent establishment, with certain particularities, such as… Continue reading Tax advisor: Severance pay under the Beckham Law
Tax Advisor: Extension of the deductions in the Personal Income Tax of the Community of Madrid for 2023
Law 10/2023, of April 12th, which has been published in the Official Gazette of the Community of Madrid, has modified the Law of Madrid’s Assigned Taxes. The objective is to incentivize improvements in rental housing through the introduction of new deductions in the Personal Income Tax. New measures Among all the new measures we will… Continue reading Tax Advisor: Extension of the deductions in the Personal Income Tax of the Community of Madrid for 2023
Tax advisor: The bank certificate is sufficient to prove the loss due to the transfer of financial investments between related companies
The question that arises is the deductibility of losses due to the transfer of financial investments between related companies. The Administration has denied the deduction of the due to the bankruptcy of the related company, considering that the evidence provided by the plaintiff was insufficient. The Chamber considers that the subject matter of the appeal… Continue reading Tax advisor: The bank certificate is sufficient to prove the loss due to the transfer of financial investments between related companies
Tax advisor: Without business concealment, there is no simulation
According to the principles of the General Theory of Law, when a contract is entered into for a different purpose than the one normally attributed to it, a defect in the cause may arise. This situation can be divided into two types of contracts: those with a false cause, in which the parties do not… Continue reading Tax advisor: Without business concealment, there is no simulation
Tax advisor: The Supreme Court partially upholds the challenge on the derivations of joint and several liability of article 42.2 of the General Tax Act.
The Supreme Court ruled in appeal 3742/2021 on this matter. The objective was to establish whether, in cases in which a declaration of liability under article 42.2.a) of the General Tax Act is partially annulled by a court judgment, decreasing its scope, the tax administration has the obligation to issue a new declaratory act of… Continue reading Tax advisor: The Supreme Court partially upholds the challenge on the derivations of joint and several liability of article 42.2 of the General Tax Act.
Tax advisor: The correct benefit indicator to be computed in the Corporate Tax is the cost of personnel, being this the element that contributes the most added value to the final product
The Superior Court of Justice of Valencia has evaluated whether the valuation of the operations carried out by the Administration is correct, specifically in relation to the profit indicator used, which has been the cost of personnel. The appellant argues that the method of valuation of the net operating profit should be based on total… Continue reading Tax advisor: The correct benefit indicator to be computed in the Corporate Tax is the cost of personnel, being this the element that contributes the most added value to the final product
Tax advisor: Tax compensation for landlords who reduce the rent of their apartment by more than 5%.
The current text of the Housing Law sets a ceiling on rental prices and reduces from ten to five the number of properties needed to be considered a large owner. In addition, tax incentives for landlords are incorporated: in the case of rentals of regular housing in stressed areas, the reduction in Personal Income Tax… Continue reading Tax advisor: Tax compensation for landlords who reduce the rent of their apartment by more than 5%.
Tax advisor: The Beckham Law and the modifications in the Startups Law
The Beckham Law, or the special tax regime for workers posted to Spanish territory, has undergone several modifications with the so-called Startups Law in order to attract from abroad those entrepreneurs and talents who want to develop their practical function in Spain. To put in context, it is important to remember that the Beckham Law… Continue reading Tax advisor: The Beckham Law and the modifications in the Startups Law