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A son inquires whether care provided to his mother creates an obligation for remuneration and how such payments would be taxed. The DGT clarifies that these caregiving activities occur within a family framework rather than a contractual one, and that if remuneration were provided, it would be taxed as employment income.
This ruling clarifies the tax treatment of informal caregiving within families, distinguishing between familial support and professional employment contracts.
The tax team reviews your specific situation.
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