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V0319-23 ·20 February 2023 ·consulta-vinculante Medium impact
Tax

Monthly payments agreed for a deceased employee are subject to Inheritance and Gift Tax

A query was raised regarding whether amounts a financial institution must pay to the heirs of a deceased employee (under a leave of absence agreement) are subject to Personal Income Tax (IRPF) or Inheritance Tax. The DGT determines that the employee's earnings up to the date of death are subject to IRPF, whereas the amounts received by the heirs are subject to Inheritance Tax.

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2023-02-20PublishedPublished in the BOE
Official text Based on BOE data (boe.es). Information, not advice.

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This analysis is informational only and does not constitute legal advice or create a client-adviser relationship. BM Consulting.
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