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: taxable income
Tax advisor: Do subsidies to intercity public transport affect the VAT taxable base?
The contested ruling concluded that when a public service is offered or an activity of general interest is carried out that does not have specific recipients identified in advance, but is aimed at the community in general, transactions subject to VAT are not generated because the legal link in which reciprocal supplies are exchanged is… Continue reading Tax advisor: Do subsidies to intercity public transport affect the VAT taxable base?
Tax Advisor: Is it required to increase the global reserves of an entity to be able to apply the reduction of the taxable base of the Corporate Tax, as a depletion factor, in the case of mining regime?
The challenged ruling concluded that, according to the applicable precept, it is a necessary requirement to increase the entity’s reserve accounts by the same amount that the taxable income was reduced. Therefore, the claimant’s argument that there is no legal requirement in this regard is not accepted. The Administration has not considered any other benefit… Continue reading Tax Advisor: Is it required to increase the global reserves of an entity to be able to apply the reduction of the taxable base of the Corporate Tax, as a depletion factor, in the case of mining regime?
Tax advisor: The jumping error in the Inheritance and Gift Tax (ISD) does not occur when a reduction is not applied, since there has not been an increase in the tax amount that exceeds the established base.
The objective of this appeal, from the perspective of the objective interest in the formation of case law, is to determine, when interpreting article 56.3 of the General Tax Act (LGT), what should be the criterion for determining the existence of the leap error. This is done either by taking as a reference the taxable… Continue reading Tax advisor: The jumping error in the Inheritance and Gift Tax (ISD) does not occur when a reduction is not applied, since there has not been an increase in the tax amount that exceeds the established base.