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Post by Munnaf911 on Oct 22, 2023 2:06:58 GMT -5
Income tax exemption, which the Tax Agency has been resolving through binding consultations. In certain sectors, such as banking, it is common practice when there is a change of bank to agree on seniority for compensation purposes based on the time provided in the sector. In these cases, the question that arises is whether the compensation that should be exempt is that of providing services in the company. In which the dismissal occurs or that recognized by agreement or contract, individual or collective. The Tax Agency maintains the criterion that only the years of service in the bank in which the moible number data dismissal takes place must be taken into account for the purposes of calculating exempt compensation, without the seniority corresponding to the years of service in another company or entity must be computed for such purposes. Another question that arises is whether severance pay is exempt for personal income tax purposes, when the worker, after the termination of the contract, is rehired. Article 1 of Royal Decree 439/2007, of March 30, which approves the Personal Income Tax Regulation establishes that the enjoyment of the exemption provided for in the Personal Income Tax Law will be conditioned to the actual effective separation of the worker.
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